There are many people that devote extensive time and planning to make purchases. Everything from choosing a vehicle to buy two choosing the right restaurant can be researched online with ease. Even though it may not be as fun to consider estate planning selections for the future, it’s especially important to protect what you’ve worked so hard to accomplish. Estate planning isn’t something that needs to be taken on only by the wealthy, without having a plan in place you could creep into putting your loved ones at risk or have them face costly impacts as a result of an accident you didn’t plan for. Here are the top four reasons why estate planning is so important.
It Will Protect Your Beneficiary
Estate planning is commonly something that you would associate with people that have a high net worth. Without having a designated heir for your assets, however, they may simply be divided or left in a state of limbo. Rather than the courts deciding who will get your assets in a process that could take years, you could have a document in place that would make sure your surviving spouse or family member gets access to your assets quickly.
It Can Protect Your Children
No young parent plans to pass away unexpectedly but without a plan in place, you may not be able to protect your children. Having estate planning in place will make sure that your children are cared for by a guardian that you approve. Without the names of an official Guardian, the court will step in and decide who will be responsible for caring for your children. Planning for your future with estate planning will also make sure that your children will have access to assets as you would like to distribute them.
Preparing For Taxes
Estate planning can be important to protecting your loved ones and this means offering them protection against the IRS as well. Estate planning means transferring assets to your heirs in a way that they will incur less of the tax burden. Proper planning will make sure that you can reduce the amount of state inheritance taxes that your beneficiaries will be responsible for. Without proper tax planning, you could be giving a larger portion of your estate to the government.
Eliminating Family Feuds
In the worst-case scenario, after you pass away, the division of your estate could eventually lead to squabbling between your family members. It is possible your siblings might feel as though they are more deserving of your assets than another or you may even have your children fighting over assets. Estate planning can be an excellent way to enable who will control your assets, who should get what, and more. There can be individualized plans set up as well as alternate plans if one of your beneficiaries is sick or if conditions change as a result of your passing. You can also make arrangements on when the inheritance will be delivered and choose if you would like to have the assets held until a family member turns a specific age. Having these options in place will help to prevent issues with the dissolution of assets in the future.
If you are interested in learning more about the reasons estate planning is so important or making an appointment to start your estate plan, contact our staff today. We can make sure that the process of your estate planning can be handled with the help of experts in the field. Let us create a plan for your future and make sure that you are not stuck in a situation of family drama, tax issues, and more.