Estate planning might seem unnecessary or inaccessible for many, but that is far from the truth. Estate planning allows you to arrange and anticipate the disposal and management of your estate during your life in the event of your passing or incapacitation.
It ensures your assets, property, savings, and other items are properly distributed among your loved ones or given to your preferred charity once you are not here or able to make the decisions. It also gives your loved ones clear directions regarding any medical decisions to be made on your behalf.
If you are still unsure about it, here are the many benefits of estate planning:
Helps Avoid Estate Probate
Using the right strategy and tool to plan your estate will protect your loved ones from going through a lengthy, stressful, and costly probate process. Probate is a proceeding supervised by the court to validate your will and ensure the proper estate distribution.
Spares your Loved Ones a Major Tax Cut
Estate planning protects your loved ones from a significant tax burden from the Internal Revenue Service (IRS). Just a few hours of planning can allow you to drastically reduce most or even all the state inheritance and state and federal estate taxes.
Ensures Guardians for Minor Children
Estate planning is especially integral if you have minor children. It allows you to appoint your preferred guardian for the kids in case of your passing before they get older. Not doing so means the court would decide the guardian for your children, which might not always be ideal.
Prepares for Medical Emergencies
In case of a sudden decline in health, your loved ones will be burdened to make medical decisions on your behalf if you are unable to do so. Estate planning allows you to establish legal provisions to ensure your wishes are considered for future medical care.
Prevents Family Messes
With an estate plan, the chances of family arguments and fights are eliminated, even if they don’t agree with the decisions made. This will ensure all your wishes are followed without creating problems among the surviving family members.
Allows End-of-Life Planning
In the event of your incapacitation, the estate plan will provide directions to your loved ones to make decisions based on your choice. End-of-life planning also saves your loved ones from a lot of distress when it comes to making health decisions on your behalf.
Not creating an estate plan is bound to create problems for your loved ones in the future. If you want to secure the future of your dependents and other family members through your estate, it is integral to create an estate plan.
Laws related to estate planning can be complex, not to mention the taxes involved. The slightest mistake could lead to costly consequences. Therefore, it is ideal to get a professional involved in creating an estate plan.