October is National Estate Planning Month intended to help people understand the meaning of estate planning and why it’s an important component of financial wellness.

Saving for the future can be challenging for many people. Factors like how much to save and where to invest can make it a daunting task. Understanding what estate planning is should be the first step to a proactive, successful plan.

Estate planning is the development of a strategy that will maintain the financial security of individuals throughout their lives to insure the transfer of their property and assets at death. The plan should be personalized to include family circumstances and potential costs.

A solid plan is crucial for ensuring that your assets are distributed according to your wishes, protecting your loved ones and minimizing legal complications after your death. Without a plan, state laws will dictate the asset distribution and can involve your heirs in a lengthy and costly probate process that can take years to resolve.

A well-structured estate plan can also alleviate costs like legal and probate fees and taxes that could involve 50 percent of your assets. In addition, this year brings an end to the 2017 Tax Cuts and Jobs Act which means the possibility of tax cuts expiring or being made permanent.

Emerging trends in digital assets and technology are also reshaping estate planning. Cryptocurrencies and digital memorabilia require updated planning approaches. A digital estate plan can manage crypto accounts, subscriptions and digital passwords.

Other factors to consider when creating an estate plan is the protection of children under the age of 18 and the preparation for possible incapacitation. Every adult should have a will, a living will for healthcare, and a financial power of attorney to insure proper financial and medical distribution after your death and even appoint a guardian for underage children.

Studies have shown that less than half Americans have the proper estate planning documents, and even fewer have a will. Knowing that you have a plan in place can provide peace of mind for you and your family, as well as reduce stress and potential conflicts during an already difficult time.