Estate planning is really important and it’s a term that is not so familiar to many people. It is mostly confused misunderstood from its actual meaning. With estate planning, it merely means who will inherit what after you are gone. Majorly it entails on dividing your properties to your beneficiaries. So many people tend to think that estate planning is only for the rich and wealthy, but this is a misconception. Estate planning involves every human being, regardless of their statuses.
Therefore this article will expound much on the reasons why estate planning is essential, the benefits of it and their importance.
Significant reasons why estate planning is essential
Determines who will inherit your assets
An estate plan helps in deciding who will get what after you are gone. And since we said the estate planning is for every, every family as little or big assets that they will have to leave behind. Things like personal effect, real estates, land, and other vital possession are better when pre-planned and shared among the beneficiary. It will help to avoid your family being left in wrangles and fussing over it.
If you left it unplanned, you would find it will not help your family, but instead, most of it will be used to hire lawyers and to file court cases. You better make up your mind about estate planning so you can leave your family and beneficiaries in a better position.
Protects your children from tragedy
Many times people confuse or misunderstand estate planning. They think that its for people who have advanced in years but it’s not true. No one knows when their time to go is so young and old, especially if you have a family you are entitled to it. You don’t want to leave your children suffering. You better be prepared for the worst. Set a will that will take care of your young children. State which portion of your assets will be shared before they mature up to adults and what they will inherit when they come to be of age.
To keep your assets and wealth from creditors
An estate plan will act as your asset protection plan. Creditors cannot mortgage your assets when you have an estate plan. This estate plan helps to protect your clients and beneficiaries from the law shortly. Another thing an estate plan is vital to in case of remarriage. If you die and your spouse get married to another, your assets will from going to the other family formed. Your wealth is retained in among your family members and beneficiary only.
If you die without the estate plan, your beneficiaries assets and resources become exposed to creditors so they can be sought to pay off debts. It means this asset may not benefit the beneficiaries; instead,
It’s a better way of preventing an unintended recipient from inheriting your property
Without the estate plan, you put the court in a position to determine who get what of your property. The court has a right to give whoever they decide will inherit your estate. In as much as you are working hard, so you have something to leave to your family, you should have a plan of inheritance. You are better placed to know your children; responsible and irresponsible, and so laying this estate plan is essential. The court, on the other hand, does not know your sibling neither can it decide for you that all your assets which will result in the hands of your living spouse. It is up to you to do that with the help of an estate plan.
Saves your family from wars and quarreling
If you happen to go without laying out a will, a significant problem might fall on the entire family. There will be a lot of differences as they try to outdo each other. You need to have a good plan on who will be responsible for your asset after you are gone or when not capable of handling the situation. To avoid the drama that happens after the death of a rich or wealthy person, it is better you plan your family up. It will help identify your beneficiaries. If anyone else claims your properties, by the will which saves your family an enormous problem. You will be able to choose who can control your finances and assets after you are gone.
Minimization of the costs of transfer taxes
In this sector, it is imperative to have an estate plan. Upon your death or at the time you become disabled on handling things. When you reach that point, you want to transfer your assets to the other family members and loved ones upon your death, then the best step to take is to have an estate plan. It can help you come up with a great approach to do in the most tax efficient way possible. The family can avoid these taxes through the following types of fees: the estate tax, generation-skipping taxes, and the gift tases.
Benefits of estate planning
There are so many benefits that are associated with estate planning. It guarantees the future of generation to come and helps to put your family in order. Let’s dive in and unleash some of them.
Helps you to plan the future of your family once you leave them
For you to look organized and smart, you need to prepare. A plan is an essential tool for a better future, and this also applies when it comes to inheritances. You need to estate plan as early so as your family will be contented when you leave them. An estate plan will help you distribute your wealth effortlessly and efficiently. It also enables you to designate duties to your family members and benefactors once your decision making decreases.
It helps to support your area of interest
It is imperative. Many wealthy people have been supporting their area of interest through charity and donations. With an estate plan, you have a chance to state which portion of your assets goes to charity and what goes to your family. There are so many support groups you could be willing to help, for instance, cancer campaigns, Red Cross, and other areas of interest. You can also gift a friend part of your wealth, sponsor specific audiovisual programs a particular game of interest. You can support our appropriate faculty in a university of your area of interest, for instance, medicine or engineering.
Reduces future burdens of your family
An estate plan can be very beneficial in times of need. In times of grieve and sickness, it can help your family members to plan, for instance, your funeral and pay medical bills. Planning and at the same time, you are grieving is very tricky. With an estate plan, you can set a portion of your wealth to outline your wishes on funeral arrangements and the burial. It eases the burden your family could encounter when you lave them.
Clearly states your trustees on your estate
When you are estate planning, you can name that person who will oversee your money or property once you are damaged or if you die. These trustees will serve to see your properties goes to the intended beneficiary and make sure your estate managed correctly.
Helps in wealth and asset management
Management without a well-outlined plan could be hectic. After your death, it is likely to have external influences, and it could be difficult for your beneficiaries. Planning ahead of times here become the best option. Instead, you fail to plan, and your family members lose out on the wealth you left for them, its better you estate plan. State a clear wealth management plan ensure there are proper execution and management of your properties. will help your beneficiaries to build their future up on it once you are gone. If you fail to set this plan, the court will take over, and the court will decide everything per the law of the land.
It acts as the savior of your family from wars and fussing over your wealth
If you happen to go without laying out a will, a significant problem might fall on the entire family. There will be a lot of differences as they try to outdo each other. You need to have a good plan on who will be responsible for your asset after you are gone or when not capable of handling the situation. To avoid the drama that happens after the death of a rich or wealthy person, it is better you plan your family up. It will help identify your beneficiaries. If anyone else claims your properties, they become disqualified by the will which saves your family a significant problem. You will be able to choose who can control your finances and assets after you are gone.
Helps protect your children from tragedy
People tend to that think estate planning is for people who have advanced in years, but it is not valid. No one knows when their time to go is. Young and old, especially if you have a family you are entitled to it. You don’t want to leave your children suffering. You better be prepared for the worst. Set a will that will take care of your young children. State which portion of your assets they are going to own before they mature up to adults and what will inherit when they come to be of age. Also, you can state a portion to cater to your grandchildren’s education, if you have disabled children(child) they can also benefit from this plan.
It saves you the lengthy probate process
Save your family the trouble, and am sure you want to leave them in peace. The probate process is arduous, time-consuming, tiresome, and very expensive. Again probate court workings are irritating and slow, so that means more money will in use before it goes through. You need to relax or die knowing everything is in place you better have an estate plan with you.
It will help your will to be confidential
It could be very dangerous if your estate is in probation. Confidentiality could be lost, and your will and accounts of your properties enter into the public domain. Again it means your will becomes part of public record and so anyone who wants to access it is granted the permission. You need to estate plan to help you have the privacy you would want for your assets.
In old age, there are so many things that occur to someone. The possibility of decline, disability resulting from diseases and accidents is a real danger to someone who has not planned his family. In such a situation, you will not be able to manage your assets, and so a living trust could be of great help. It provides for efficient and proper asset management.
It helps in minimizing the costs of transfer taxes
An estate plan is critical when it comes to taxes. Upon your death or at the time you become disabled on handling things, you need to have an idea of how the inheritance of your assets shall divide amongst your family and beneficiaries. When you reach that point, you want to transfer your assets to the other family members and loved ones upon your death, then the best step to take is to have an estate plan. It is because it can help you come up with a unique approach to do in the most tax efficient way possible.
The family can avoid these taxes through the following types of fees: the estate tax; it is a tax imposed on assets only left to heirs and do not apply to the transfer of assets to a living spouse — generation-skipping fees: its a tax imposed on the transfer of assets that skips a generation. A gift tax is a federal tax imposed on a person giving a portion of their wealth to another person. If you happen to die before estate planning, the court takes over, and the process is too expensive in that the asset may not even help your beneficiaries.
Estate Planning Lawyer Free Consultation
When you need legal help with your will, trust, power of attorney or estate plan, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506