Estate planning involves a variety of aspects, which include various financial instruments and legal documents. One of the most essential estate planning documents in Maryland is a last will and testament. However, this may not be enough to achieve many common estate administration goals. Usually, these goals center on ensuring a family's financial stability in the case of one's death.
This includes ensuring a family's ability to earn and obtain income after one's death, especially if the deceased is the main money earner for the family. Failure to pay attention to this aspect of estate planning can leave one's family in a tough financial situation if a person happens to pass away unexpectedly. Since life can be full of surprises, it is best to not neglect this part of creating an estate plan.
Many estate planning professionals would advise looking into purchasing a life insurance policy in order to ensure one's family will be able to receive income through benefits paid by the insurance company. However, policies come in many shapes and sizes with varying terms and benefits. A person will need to consider his or her estate planning goals and adapt the insurance policy to ensure these goals are met.
Also, one should choose an insurance policy that enhances the other aspects of a person's plans for estate administration in Maryland or in any other state. Therefore, an overall view of a person's assets and finances will need to be considered. It may also be useful to have knowledge of applicable laws when looking over the legal language of a potential life insurance policy.
Source: Boulder County Business Report, "Take time for estate planning, protecting earning power", Robert J. Pyle, April 4, 2014