Few people find it important to have a succession plan for their estate. Nonetheless, you relinquish authority to determine who gets to own your assets when you’re no longer there if you don’t embrace estate planning. Estate planning should not be the reserve of only the affluent, as lack of a practical succession plan may have a sustained effect on the lives of the dear ones you leave behind, including when there’s no high-end property, big company, or a lot of liquid cash for inheritance.
If you’re skeptical about the need to have an estate plan, here are some reasons that can change your mind and get you to start talking to your estate planning attorney:
Ascertains Your Estate is Inherited by the Right Beneficiaries
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Provided that you have a family (children, wife, or other dependents) and assets worth anything, you need an estate plan to have a say over who gets to inherit these when you pass away. You may own shares or another home, but stipulating heirs for your possessions gives you more control than the courts, and this eliminates the need for a possibly confrontational and prolonged court battle.
Practical and Helpful Tips: Estates
Safeguarding the Well-being of Families With Young Kids
Nobody wishes to think about their own early death, but being prepared for the worst is always recommended for a family with small children. In this case, you’ll use your will designate guardians for your under-18 kids in the event of the death of both parents to determine that their welfare is taken care of in a way that you’re satisfied with. The matter of who will raise your children when you die will be determined by the courts in case you don’t decide it in a will when you’re alive.
Minimize the Tax Bill
Thanks to estate planning, you can guard against your heirs paying too much taxes. An important part of your plan should entail transferring assets to named beneficiaries with a view to creating the lowest tax burden that’s legally possible. You can avoid or appreciable reduce state and federal estate taxes through a carefully prepared estate plan.
Avoidance of Family Disputes
Disagreements among family relatives of a wealthy person that has died without a will are very probable. Without a will that says who gets what when you die, one child may think they deserve more than another, or they could assert they’re better with financial management than others even when the rest of the surviving family disputes it. This feuding may make its way to the courts, with family members opposing each other. Estate planning helps avoid family disputes by stipulating your heirs in a legally enforceable way.
Start estate planning today to safeguard the interests of your loved ones.