Archives for January 2020

Why Estate Planning Is Vital

It is not something that most of us want to or enjoy the idea of think about. After all, who really wants to dwell on their mortality and think about how their assets are going to be divided up among their loved ones? However, if you don’t have a plan in place, people who you wanted to inherit that money and other assets you worked so hard to achieve, may not actually get any of it. People wrongly assume that estate planning is just for the rich in society, when, it’s for everyone.

Failure to create an estate plan could mean very expensive and long-lasting problems for the people you leave behind in death. If you do not have many assets and do not think this applies to you, think again and look at some of the most important reasons why you should have an estate plan in place.

Protection for Young Children

Again, who really wants to consider their own mortality, especially thinking about the prospect and chance you may die young? No-one. However, if you are the parent to small children, this is something you should plan for.

By having an estate plan in place and a will, you can make sure your children are looked after when you’ve gone in a way you would approve. You can outline who you want to be their guardians. If they are under 18 and you don’t have something set in stone legally, the courts will make the decision on your behalf and the reality is that this is not always in line with what the deceased would have wanted.

Prevents Family Disputes and Fallouts

You’ve probably heard of the sad and terrible stories that when someone in a family passes away who had a reasonable amount of wealth, all the family members start arguing over who is entitled to what. These kinds of messy arguments and disputes can easily and very regularly do escalate and end up in court. To prevent this from happening, you should take the time to make an estate plan. With set instructions in place, it can eliminate much of the discussion and argument over who gets what and avoid nasty and lengthy court battles between people who really should be mourning and helping each other.

Protection For Heirs From Huge Taxation

AS we’ve established, estate planning is there to protect those you leave behind, and that includes providing them with protection against the IRS. One of the keys to passing on assets to loved ones is to do so without causing them tax bills. With estate planning with a reputable law firm, you can lower or even eliminate the state and federal estate taxes and inheritance taxes they may be required to pay.

Protection for All Beneficiaries

As we noted at the outset, estate planning is no longer reserved for the richest. Most middle-class families nowadays need some form of protection in place if the main breadwinner or breadwinners die. We’ve already noted it with regards to more specific assets, but the basic point is that if you don’t have an estate plan in place, the courts will make the decision of who gets what and this will take a lot longer, cost more and cause messy rifts between loved ones and family members that may never be rectified.