No one wants to think about death. But we all have to plan for it.
When you plan your estate, you ensure your family is taken care of in the event something happens to you. If you have any dependents, you should definitely have a plan in place. If you pass away without having done proper estate planning, the consequences for your loved ones could be severe.
Here are 6 reasons why you should do estate planning.
1. Plan Your Estate and Avoid a Messy Situation
Failure to formulate a proper estate plan can result in a huge waste of time and money for your loved ones. In fact, one of the main reasons people often visit an estate planning attorney is after witnessing a friend or relative experience a nightmare situation.
If you don’t clearly define who gets what, it could result in a bitter fight between your family that could go on for years. Often, an estate dispute will result in a lengthy court battle for your loved ones.
2. Avoid Probate
You want to avoid a probate situation at all costs. Probate is when the courts need to authenticate your will. Not only is the probate process quite long (it can easily take over 6 months), but it can also cost a lot of money.
3. Protect Your Assets
In some cases, you might run into unforeseen creditors trying to get a piece of your estate. This is often a problem if you work in a job where you often encounter litigation, such as real estate. When you do proper real estate planning, you account for this eventuality.
4. Allow Someone Else to Make Decisions for You
Many health problems could leave you incapable of expressing your wishes. If you’re incapacitated, no one is going to take your loved one’s word for what your wishes would be.
If you want someone to act on your behalf in this kind of situation, you need to legally assign someone.
5. Don’t Give Your Kids All Their Money at Once
You might have children who simply can’t be trusted with money. If they came into a significant sum, they might end up losing it within the year.
In this case, you can use an estate planning lawyer to set up restrictions with the funds. For example, they could be withheld until your children reach a certain age.
6. Protect Your Heirs from Overpaying Taxes
When transferring your estate, you’re inevitably going to be hit with taxes. If you fail to set up a proper plan, the taxes you’ll have to pay will almost certainly be significantly higher.
When you do proper estate planning, you ensure your heirs will receive as much of the money as possible.
Plan Your Estate and Protect Your Family
Failing to properly plan your estate can result in a lot of problems for your family. Even if you’re a younger person, you should still properly plan your estate.
Many of the worst estate disputes arise from someone dying unexpectedly with no plan in place. Make sure your heirs get the most of the money you’ve saved and hire a good estate lawyer.
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