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Facts About Estate Planning in the United States

Nearly all people have an estate, although most people think they don’t. An estate comprises everything a person owns, including vehicles, real estate, checking accounts, savings accounts, furniture, investments, life insurance policies, etc. Some estates are larger than others, but the fact of the matter is, you cannot take your estate with you when you pass away.

A man showing off his estate

In order to make sure your desires for your belongings are considered once you die, you need to hire an estate planning professional to set up your will and other documents. These will lay out instructions on how you want your estate handled. You also want to pay the least amount of taxes and legal fees possible in the process.

Planning Ahead

Estate planning is precisely the plan you make ahead of time, stating who will get your belongings after you pass away. It also entails instructions about who would care for you if you have a severe medical condition like a coma and cannot make decisions for yourself.

Estate plans also include information on who will be the legal guardians of any minor children you leave behind, who will provide for your spouse and kids, who your business will be transferred to, and more. Estate plans can be updated as life situations change. Everyone should consider estate planning.

Most people think about estate planning after becoming a certain age, for example, when reaching retirement age. However, it’s impossible to know when someone will die. An accident or illness can happen to anybody, at any age. Thus, there is a need to plan for the uncertain future as soon as possible.

People planning an estate

A huge percentage of the population does not plan ahead, because they do not believe they have enough assets to make it worth it. However, estate planning is for people of all social classes. Oftentimes, the ones who have small estates should consider estate planning more than the wealthy.

Consequences of Not Planning Ahead

Individuals who are too busy or careless to plan ahead are probably not aware that the state would take over their assets in the event of their passing if there is no will in place. If you become disabled and your name is on the title of your assets, a court appointee is the only person allowed to sign for you. In that case, the court will take full control of all your assets, not your family. Assets in this case are very hard to recover, and the process can be hugely time consuming.

In the event of the death of someone without an estate plan, probate laws decide how the assets will be distributed. Oftentimes, this means the spouses and children of the deceased all receive a share of the wealth. If there are minor kids, then inheritances will be controlled by the state as well.

The biggest benefit of estate planning is peace of mind. All people–married, widowed, divorced, or single–should consider estate planning to ensure the wealth they leave behind is distributed according to their wishes.

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