What Is an Estate?

First things first: Did you know that you have an estate? Most people don't. When we hear the word "estate", we might picture a sprawling home in the English countryside, complete with manicured gardens and acres of land. And while that certainly qualifies as an estate, the truth is that an estate doesn't have to be anything like that.

Everyone Has an Estate

Simply put, your estate is everything you own. And everyone owns something. Your estate might include real property, like a home or a piece of land, but it doesn't have to. If you rent your home, you still have an estate. If you have a bank account or a car, you have an estate. Even if all you own is three pairs of pants or a shoebox full of baseball cards, you still have an estate.

Think of your estate as a big, imaginary picnic basket that holds all of your stuff. The legal term "estate" simply refers to the collection of property you own. Estate planning, then, is the process of deciding what happens to everything in that basket when you die.

Why Does This Matter?

We often hear people say things like:

"I don't need an estate plan. I don't own much anyway."

"I rent, so I don't need one."

And it's easy to understand why someone might think that way. When we imagine estate planning, we tend to picture complicated legal documents, expensive attorneys, and people with substantial wealth. But estate planning isn't just for the wealthy. It's for anyone who wants to have a say in what happens to the things they leave behind.

To be fair, if all you own is three pairs of pants, you probably don't need a formal estate plan. And if you're stranded on a deserted island with only a volleyball for company, estate planning probably isn't at the top of your priority list. But if, like most people, you have a bank account with money in it, a vehicle, a retirement account, a collection of firearms, or anything else with significant monetary or sentimental value to you or someone else, it's worth thinking about an estate plan.

Does Estate Planning Have to Be Complicated?

Not at all.

Not everyone needs multiple binders filled with complex legal documents. Some people need a flash drive and a trip to the bank or the tag agency. The right estate plan depends on your circumstances, your wishes, and the people you want to protect. Some plans take weeks to create, but many only take a couple of hours. The important takeaway is that estate planning doesn't have to be overwhelming, or even time consuming, and it definitely doesn't have to wait until you have accumulated significant wealth.

You already have an estate. The question is whether you've made a plan for it. Have you ever thought about how your remaining resources will be used to provide for your loved ones once you're gone?