Estate planning is no longer restricted to people owning multi-million dollar estates. You should consult an estate law firm to help you in formulating your estate plan. Keep reading to understand why estate planning is so important for everyone.
1. Protection For Beneficiaries
Many middle-class families engage in estate planning to stabilize the future of the family if something happens to the primary breadwinner. You need to ensure that whatever assets you have are passed on to your heirs. A major part of estate planning is asset protection planning and designating heirs for the assets you own.
If a person dies without an asset protection plan in place, the court will intervene. The court will decide who will get your assets. You might not like the way the court distributes your assets. The people who you wanted to be your beneficiaries might not be found eligible by the course.
Most of the time, the surviving spouse gets all the assets. Therefore, if you want one of your siblings to get the assets, you should invest in an estate plan. A proper estate plan will also enable you to support a cause or charity even after your death.
2. Protects Young Children
In case you have young children, you must think about what will happen to them in your absence. Both you and your spouse might get involved in an accident or get a terminal disease. It will put the future of your children at risk.
But an estate plan can come in handy to secure the future of your children. You need to specify the guardian of your children in a will. The guardian will ensure that your children are cared for in the same manner you would have done. The appointed guardian will also manage the financial affairs of the children as long as they are minors.
If you do not mention a guardian, the court will step in. The court will decide who will take care of your children. Your children might end up with relatives you would not have approved of.
3. Minimizes Tax
Estate planning revolves around caring for your loved ones. A significant part of estate planning is also offering protection to your family from the Internal Revenue Service. You must aim to create a small tax burden for your heirs.
An estate probate lawyer can help in implementing strategies that reduce the amount of paying estate taxes. They might ask you to set up trusts to reduce the taxes your beneficiaries will have to pay by a considerable amount. Couples can strive to reduce their state inheritance taxes and federal taxes by taking up the practice of proper estate planning.
4. Eliminate Conflicts Within The Family
Estate planning can help in avoiding family strife. If someone dies without an estate plan, there can be many misunderstandings among the family members. One relative might think that they deserve a part of the estate of the deceased person. On the other hand, the surviving spouse might feel that they have the right to all the assets.
Family squabbling over inheritance can get ugly, often leading to the court. In court, the process to determine how to distribute the assets of a deceased person might take a lot of time. A significant amount of the assets can be spent in paying the fees of court proceedings. Moreover, the verdict given out by the court on estate-related cases is not always satisfactory.
5. Make Retirement Easier
Estate planning is not just essential for the time when you are not there to provide for your family. It can also help you in making life after retirement free of financial worries. Healthcare is an area where an estate plan can become helpful. A legal aid attorney will draft your estate plan in such a way that you won’t be deprived of government healthcare benefits.
Even if you become incapacitated to work, estate planning will ensure you and your family do not undergo a financial crisis. A power of attorney can be provided to a trusted person. The person will manage all your assets when you are unable to manage them yourself.
6. Support Your Business
An estate plan is a great way to make your business run smoothly. Your business will fall apart without an estate plan if something happens to you. It can lead to financial hardship for your family.
Business estate planning helps you provide a power of attorney to someone who will ensure an orderly transition. It is crucial for you to spell out what will happen to your business if you become incapacitated. Otherwise, the legacy of your business might not get carried forward.
The Bottom Line
The many benefits of an estate plan make it important for every individual. You must consult with a top law attorney in Atlanta to ensure that you have a good estate plan in place.