Many people seem to spend more time planning to eat out or a vacation than they do planning who’ll inherit their estate. Of course, estate planning might not be as enjoyable as booking a vacation or checking out reviews of restaurants, but without it, deciding who inherits everything you’ve really worked hard for is impossible.
Estate planning isn’t for rich people only. Without estate planning, your loved ones may be affected for a long time, even if you do not have a valuable art work, large investment account, or expensive home to pass on. If you’re not convinced that you need estate planning, here are 4 reasons why planning for your estate before you die is very important.
Prevents unintended beneficiaries getting your assets
Estate planning attorney is important not just for the rich but also the middle class. After all, you do not need to be wealthy to make it in real estate or stock market, both of which bring assets you’ll want to bequeath your inheritors. Even if you only have a second home, if you do not decide who gets the property when you pass on, you won’t have any say on who gets the home.
Protects families with young kids
If you’ve got young kids, you need to be ready for the unthinkable. To ensure your kids are cared for your own way, name their guardians in case you both die before the children are 18. Otherwise, the courts are going to step in and determine who’ll look after your children, not who gets part of your real estate or piece of art.
Stops inheritors overpaying in taxes
Estate planning is really about looking after your loved ones, which means somewhat protecting them from heavy tax hits. Transferring assets to your inheritors with the intention of having the lightest possible tax burden is key to estate planning. Even with a tad of estate planning, parents can reduce their inheritance taxes, as well as state/federal estate taxes, which might be very steep. But if you have no plan, your inheritors will owe the government lots of money.
Eliminates family troubles after you pass on
We’ve all heard about family wrangles that take place when somebody with money passes on. This wrangling can turn ugly and wind up in the courts, with relatives taking on each other. This is yet one more reason why it’s essential to have an estate plan. This will let you pick who’s in charge of your estate if you become mentally incapacitated or die. It’ll also help a lot in quelling any family conflict and making sure that your estate is handled in the manner that you want. Consult Columbia trust attorney to know more!