We’re born, we live, we die.
That’s just how it is. While your wealth will not go with you to the grave, they will still be there after you die. The fruits of your labor, your bank accounts, real estate, and vehicles will all be left behind.
Who should take them? Naturally, you’d want your assets to go to the people whom you think are deserving.
To make sure that this happens, what you need is estate planning. The estate plan is about making the necessary arrangements in the event of your passing.
It’s not just for the rich. Here are some of the reasons why you should have one, for your peace of mind and your loved ones’.
1. The Estate Plan Protects Your Decision
An important purpose of estate planning is to guarantee that you can dispose of your wealth in whatever manner you wish when you die. Do you want to give it to your family, to a charity or maybe to your pet?
You have the right to decide where your assets go and having an estate plan protects that right.
If you die without a will, the state where you live will take over that decision. Naming your beneficiaries will help you to avoid that situation.
2. It Protects Your Beneficiaries
Ultimately, you’re setting up an estate plan for your loved ones. That way, they can enjoy what you leave behind, without hassle. There are different ways that estate planning can protect your beneficiaries.
Dying without an estate plan, you’ll see your assets get tied up for years in probate. This process is expensive and will reduce the inheritance of your loved ones because of the legal costs.
Another reason for planning ahead is to safeguard the future of beneficiaries who are minors. For adult beneficiaries, an estate plan can defend them from bad decisions if they’re bad with money.
3. You Avoid Family Disputes
This is a scene that’s all too real and not just in soap operas and daytime dramas. The ugly side of money is that people, even family members, are too ready to fight over it.
If you designate who your beneficiaries are and how much they’ll get, there will be no reason for fighting. Sure, some may grumble and complain, but they can’t do anything to contest it. Your word is final, and that is that.
4. You Can Minimize Taxes
One of the biggest benefits of talking to your trust lawyer is to minimize the tax burden for your beneficiaries. You can reduce estate taxes and other transfer taxes, such as gift tax and generation-skipping tax.
With a good estate plan in place, you can rescue a significant chunk of your wealth that would otherwise go to the government.
5. It Protects You
One of the misconceptions about estate planning is that you only need it to plan for your death. However, an estate plan can also protect you and your properties if you become mentally incapacitated. If you can’t make decisions for yourself, you can decide who can do that for you in such a situation.
Your Life, Your Wealth, Your Decision
If something happens to you, the estate plan is there as a safety net for yourself and your loved ones. It’s up to you to protect and preserve the way of life of those you leave behind.
Don’t think about it and just do it. It’s the responsible thing to do.
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