Significance of Estate Planning
Estate planning is the devising of strategies on how best to manage an individual’s estate in the event of death or incapacitation. Estate planning is not only for the wealthy. The lack of a plan, settling your affairs, after your unfortunate demise could have a long-term expensive impact on your loved ones.
One of the major benefits of estate planning is that it protects beneficiaries. Moreover, you don’t have to be wealthy to perform well in stocks and real estate, which will both yield long-term benefits, that can be inherited by your successors. If no proper plan was in place the assets endowment is decided by the courts. Your demise will be a big blow to your loved ones, you have the power to make their healing process smoother by helping them avoid the weary court process.
Additionally, estate planning protects young children. Therefore, you should ensure you put a proper plan in place to ensure they will be well taken care of even in your absence. Your kids may grow up with a family member, that you don’t approve off or dislike or even end up in the system been moved from one foster home to another. Estate planning ensures your wishes are met and your children secured.
The other major merit is that estate planning spares beneficiaries from the big tax menace. There are many other ways that can be exploited to lower the tax your beneficiaries have to pay, with the guidance of an estate planning lawyer. Therefore, hiring a real estate attorney saves you time, money and issues with the state.
We have all heard or even been part of scenarios where a wealthy person dies and family members start to fight over the property rights. One way to stop a fight is by preventing it in the first place and that why estate planning is essential. For those still in school you can set up an education trust. Having clearly laid out what portion goes to each of your beneficiaries and who manages it goes a long way in securing your assets and reducing conflict.
In the absence of one your beneficiaries will be involved in messy court battles, your kids end up in the wrong hands, they will bear huge tax burdens and will be exposed to all the predators. It is therefore advisable that individuals execute a properly drafted last will and testament by an experienced, licensed attorney. Planning how your estate will be divided and managed when you are no longer there is just as important as developing them. Planning gives a degree of certainty.