Estate planning is one of those things that we will always just “get around to doing.” There are so many other fun and exciting things to do in life. We want to take vacations or spend time with family and friends, not think about who gets our assets when we are gone. However, we don’t know when accidents can happen. Planning out who gets your hard-earned assets has plenty of benefits to consider.
There might be a misconception that only the wealthy need to worry about estate planning. Yet, families are often left to settle affairs with little to no direction. This process is not only emotional but costly for your loved ones. Furthermore, an estate plan helps protect your family assets, preserving shared history.
We here at Family Law Group want to explain the benefits of estate planning. Keep reading to find out why you should take the time to start estate planning.
1. Protecting Yourself
Estate planning is typically associated with death. However, if you become sick or unable to care for yourself, an estate plan can also help protect assets. In your estate plan, you can designate a power of attorney or specific healthcare proxy to make all of your important financial and medical decisions. When estate planning, make sure to have these conversations with individuals you trust and won’t take advantage of you.
2. Protecting Your Children
Wills are an essential component of an estate plan. If you have young children, think long and hard about drafting a will for their safety. If parents die before the child turns 18 and there is no direction from the parents, the courts will decide who raises your children. Take the time to determine who you would want to raise your children in the event of an emergency. This will could help protect your children from placement in the foster care system.
3. Delegating Your Assets
Estate planning also allows you to delegate your assets in whatever way you wish. If you have no documentation stating how you want your estate distributed, the state will typically step in for delegation. This process may upset or overwhelm your family members. If anything, always make sure to update your beneficiaries on specific accounts or insurance policies. Furthermore, consider how you want your assets handled. Do you have particular items that you wish to leave to certain family members? A simple estate plan can eliminate any guesswork and ensure that your estate is managed correctly.
4. Save Your Family The Trouble
Post-death family asset disputes are more common than you think. Each family member may feel that they deserve a specific portion of the estate. These types of debates are severe and can end up in court if not resolved. Having family members pit themselves against one another is not the ideal situation. However, by having an estate plan, you can eliminate this process for your family. While some family members may be upset with the estate plan, they cannot go against your desire and documented word.
5. Conserve on Taxes
Preemptive estate planning can help reduce the amount of taxes on your estate. The IRS has specific tax types to consider when planning your estate, the estate, gift, and generation-skipping. By having a thorough plan, you can organize your assets in a way that minimizes the amount of taxes charged to your estate. This will also help your family save money in the long run.
Start Your Estate Plan Today
As you can see, estate planning can eliminate many issues for you and your family. While you may think you can just put off your estate plan, you must have one in place to protect yourself and your family. If you need assistance in the estate planning process, make sure to visit Family Law Group. Our law experts can help you organize your assets today.
Allow us to walk you through each step of the planning process by giving us a call at (703) 552-5072 today!