We all put a lot of thought into planning our yearly vacation, birthday parties, graduation ceremonies, weddings, but we never think about the other important things in life, like estate planning.
Who will get our assets after we die?
This question may not be as fun as choosing a venue for your bachelorette party or making reservations for the monthly dinner, but without estate planning, you can’t protect your assets after you die, and during your life as well.
We are surrounded by the misconception that “estate planning” is for the rich. But that’s not true. In fact, the word “estate” in this context doesn’t mean what most of us think it does.
Estate planning documents how your assets will be distributed after you are gone. Not just that! It protects your children/ heirs and beneficiaries from creditors, taxes, and exploitation.
That said, if you don’t have an estate plan in place, you should consult with an elder estate planning law firm now and get it sorted. Still not convinced?
Enlisted below are 4 reasons why estate planning is crucial.
Protects Your Assets
Estate planning is for everyone.
Your family home, stock & real market investments, cherished possessions, are all your assets. Although no one likes to think about death. But if you pass away and don’t have an estate plan in place, the court formulates the asset distribution to your potential heirs.
And let us tell you, that’s not a simple process.
Over the course of their career, attorneys have witnessed various matters stuck in the court for years and things getting ugly for the family. That’s why it is essential to have an estate plan.
Your estate plan will document who gets what and help your family members avoid the court’s complications.
Secures The Future Of Young Children
Estate planning is even more crucial if you have young kids. What will happen to them if you go away? They will need you, but you might not be able to stay.
That’s why you must always be prepared for the worst to happen. To ensure your children get what they deserve and are cared for in a manner you approve, you must curate a will.
Without such a will, your kids will suffer and won’t inherit your estate. Rather, the court will step in and make important decisions. Not just the distribution of the assets but also the decision of who will look after your children.
Reduces The Estate Taxes
Another major reason why you need estate planning is to protect your beneficiaries/ heirs from overpaying taxes. These taxes can significantly reduce your overall estate that you are leaving behind for your loved ones. And that’s why you must plan strategically and transfer your assets with a lower tax burden.
The estate planning attorney has complete knowledge about how to lower state, federal, and income tax. With their help, your heirs will not have to pay Tom, Dick, and Harry a lot, as a tax.
Provides You Peace Of Mind
You might not know, but estate planning also provides various benefits when you are alive. For starters, by reducing your healthcare costs, it makes your life easier after retirement.
Moreover, it gives you peace of mind that your beneficiaries will get what they rightfully own, in case, something were to happen to you. This means once the plan is ready, you will have no worries in the future.
There are two common misconceptions concerning estate planning. One, it’s only for the wealthy and two; it’s a tedious, complicated, and messy process. The former is entirely false, while the latter can sometimes be true depending upon your assets and the estate planning attorney you consult with.
A reliable estate planning lawyer can guide you through the rough patch and make things easier. They can help you formulate an up-to-date estate plan and protect your loved ones.
Hopefully, this was helpful.