Do you have an estate plan in place?
Estate planning is something many people tend to overlook or procrastinate getting done. Among other things, an estate plan specifies who will inherit your property after you die. The documents can also nominate who will raise minor children when parents pass away; help future heirs avoid the need for probate; minimize potential death tax liability for large estates; and specify someone’s wishes as far as advance directives for medical care. Every estate plan consists of a Will and Powers of Attorney. Most people also benefit from creating a Trust.
Despite its importance, a significant number of people do not have an estate plan in place. In this article, we’ll discuss why everyone should. Here are the main reasons every person should have an estate plan:
- Protect your assets
An estate plan is essential for protecting your assets and properties from the risk of loss or damage. Without a proper estate plan, your assets may be subject to unnecessary taxes, fees, and legal battles, which can drain your estate’s value and delay distribution to your beneficiaries. An estate plan can help you protect your assets from creditors, lawsuits, and other potential risks.
- Control distribution of assets
An estate plan allows you to control the distribution of your assets after your death. With a will, you can specify who will receive your assets and how they will be distributed. Without a will, your assets will be distributed according to the state’s intestacy laws, which may not align with your wishes. A trust can also be used to distribute assets to your beneficiaries while minimizing taxes and avoiding probate.
- Avoid family disputes
One of the significant benefits of having an estate plan is that it can help avoid family disputes and conflicts. When a person dies without an estate plan, family members may disagree on how to distribute the assets, leading to unnecessary stress, tension, and legal battles. An estate plan can clarify your wishes and prevent family disputes by providing a clear roadmap for asset distribution.
- Protect minor children
If you have minor children, an estate plan is essential to protect their future. With a will, you can name a guardian for your children and specify how their needs will be met in case of your death or incapacitation. A trust can also be used to manage the assets for the children and ensure that they are used for their benefit.
- Save time and money
An estate plan can save time and money by minimizing future legal fees, taxes, and court costs. A well-crafted estate plan can help reduce the time it takes to distribute assets to beneficiaries, minimize taxes, and avoid probate. This can save your family time and money and ensure that your estate is distributed efficiently and effectively.
An estate plan is a crucial aspect of financial planning that everyone should have. It protects your assets, allows you to control the distribution of your assets, avoids family disputes, protects minor children, and saves time and money. If you haven’t created an estate plan yet, it’s never too late to start. The attorneys at Granholm & Gynac can help you put something in place quickly and affordably.