The Importance of Estate Planning

We all have heard about family conflict stories. Someday, someone with the capital dies, and there is a war amongst family members.

Estate planning is not just for the rich! Without having a correct plan, managing things after you go can have a costly and long-lasting impact on your dear and loved ones. It is true even if you don’t possess an expensive home, some precious art, and a vast IRA to pass on. 

Are you still not convinced of an estate plan? If yes, you might want to consider the following four reasons and realize the relevance of estate planning, where an estate planning lawyer can help you. To know more about it, check out Farmington-based estate planning lawyers. 

1. Estate plan secured beneficiaries.

If ever estate planning was considered a process for the rich, today things have changed! Today, several middle-class families must plan for a time when something might happen to the bread earner. One doesn’t need to be rich to perform well in the real estate or stock market. Both generate assets that you might want to pass on to the heirs. 

You might be only leaving behind one second home. However, if you fail to decide the one who gets it, things might become complicated. The primary aspect of estate planning is allocating heirs to the assets, whether it’s a stock portfolio or a summer house. When there is no estate plan, the court decides who gets the assets that might take years and a huge fee. 

2. It protects young children

   

No one wants to die young! However, if you have small children, you need to get prepared for the worst. Here the will aspect of the estate plan comes in. To make sure that your kids get the care you want, it is essential to nominate their guardians. When there is a will that doesn’t have the guardians’ name, the court will intervene and determine who can bring up the children. 

3. It spares the heirs of a huge tax bite

The process of estate planning is all about securing your loved ones. It means providing them security from the IRS (Internal Revenue Service). Crucial to estate planning is the process of transferring assets to the heirs with an attempt at generating the smallest tax burden for them. 

Minimal estate planning can allow couples to minimize a vast amount of all the state and federal estate taxes and state inheritance taxes. You will also find ways to reduce the income tax that beneficiaries might need to pay. 

4. It can reduce family mess.

We all have heard about family conflict stories. Someday, someone with the capital dies, and there is a war amongst family members. There might be one sibling who might think they deserve much more than the other. Other siblings might feel that they should be given the charge for financial matters even if they aren’t good with debts and finances. Such fights can get ugly and lead to court, and the family members can get pitted against one another—Estate planning will assist in making individualized plans. For instance, it can help you arrange a plan for a child who needs health support or create a trust for someone who shouldn’t inherit a hefty sum. 

These are some of the crucial reasons for which families should opt-in for estate planning today.