Although it’s widely known that estate planning is important, most people prefer to put it off. Unfortunately, it’s one of those things that simply needs to get done or the repercussions could be severe for those most important to you. Vague notions don’t tend to motivate, so here are some of the reasons you should get started today.
Estate Planning Helps the Living
No one wants to think about their own demise, which is one of the main reasons they put off planning their estate. It’s important to remember, though, that estate planning is not just about when you have passed away.
What happens if you were to become incapacitated? A tragic event could leave you disabled, too. With an estate plan drafted by you and put into effect by an estate planning attorney, you can rest assured that someone is available -someone you trust- to look after your affairs. Furthermore, they’ll have your pre-designed, clear-cut instructions to follow as they do so.
Avoid Unnecessary Taxes
Estate planning is central to planning for your passing and taking care of those that survive you. One of the major disadvantages every family faces when their loved one passes without an estate planned is taxes. Income and capital gains taxes can strip your savings, leaving far less left for your loved ones.
With a well-drafted plan, estate taxes can be greatly minimized or even avoided altogether.
Ensure Your Wishes Are Honored
Without an estate plan, you’ll be lucky if all of your wishes are properly honored when you’re gone. Divorces in your family, lawsuits and creditors can all challenge who owns what you’ve left behind. Your spouse could also remarry someone with children, who would then have some entitlement to money you otherwise thought would transfer directly to your children and other beneficiaries.
Once again, with a solid estate plan, you’ll have your wishes spelled out. Challenging them becomes difficult for those that want more than you intended.
In fact, with a “no-contest” provision, your plan will be virtually bulletproof. Such a clause will most likely discourage anyone from challenging it.
Help Inexperienced Loved Ones
Even when your loved ones get your money as planned, that does not mean they will use it as you would have preferred. Some of your family members may not have experience with the amount you’re leaving them.
Fortunately, you don’t have to be around to guide them in using the money responsibly. Your estate can include instructions that the beneficiary has to follow. For example, you could leave some of it as a college fund or insist that it goes into an account that can’t be touched for a certain number of years.
You can even take things a step further and stipulate that certain funds can only be accessed by family members after they’ve completed certain milestones in their life. This will also protect your money from depletion if your heirs make poor decisions.
With Clear Counsel Law Group, you don’t have to put your planning off to another day. Contact us today and we’ll work with you to ensure your wishes are known and followed.