In today’s world, having an estate plan is very important. Not only does it make sure that your assets are distrusted on your own terms but it lets you avoid extra taxes as well. Having an estate plan can ensure that you and your family are safe from any potential future controversy.
If you want to ensure that your family is protected when you are gone, you should get an estate plan as soon as possible. But understand that it is not just for assets protection after death, nor is it only for the rich. Having an estate plan also means having a plan for your lifetime in which you decide how your assets will be distributed and who will get to be the trust.
Ideally, one should think of getting an estate plan as soon as they have experienced a major life change. For example, if you have recently got married, you should consider getting an estate plan. In this article, I have mentioned a few points that will make you understand the importance of having an estate plan.
It Reflects On Your Financial Situation
Devising a state plan requires a detailed assessment of your current financial situation. If you have hired a lawyer for your estate plan, he will ask you to show everything you have so he can assess your financial situation and can propose a plan accordingly. This will require you to collect all the details from property receipts to bank statements.
You will even have to take into consideration your valuable items as well. It does not matter if it is an expensive car or a gold watch. This also allows you to plan for the future distribution of small gifts. Once you have provided all the necessary documents to your lawyer, he or she will be able to paint an accurate picture of your present finances and you will know what situation you are in.
Estate planning also includes asset protection and asset distribution. Asset protection is something that most people think that they do not need. But when the time comes and you need it in a situation of a divorce or bankruptcy, it can be your lifesaver.
I hope you will not get into any situation that will push you to rely on asset protection, but it’s better to be safe than sorry. If you even have the slightest doubt about anything like divorce, bankruptcy, or a judgment, then it is highly recommended that you see a lawyer and get an asset protection estate plan. You can also consider companies such as Elder Law Group who have been providing exceptional services in asset protection estate planning.
It Can Avoid Lengthy Legal Battles
If you die without an estate plan, then your assets will be left astray and your family will have to fight for it in court. When a case goes into a court, it can turn into a lengthy legal battle. Not only will it drain the resources you’re left behind for your family but can also dispute them against each other.
That is why you need to make sure that you are not only making your family aware of your wishes but you have planned for their future as well. This does not only apply in the case of death. If you get mentally unfit, your family could face a similar kind of scenario.
For someone who has their own business, even if it is a small one, having an estate plan is necessary. When you build a business with so much effort, you do not want it to get destroyed just because you were not able to pass the torch to the right person.
So you need to go through this complicated legal work and need to pick a successor for your business. You may need the help of your accountant as well in this regard. And when you are naming someone in the will you will need their consent as well. Remember, do not make this decision emotionally.
You need to keep in mind that running a company is not easy and anyone who will take the job will be taking over a lot of responsibilities. So consider all the things from day-to-day operations to business to business financial dealings at the back end. And the successor does not necessarily have to be from the family. It could be a loyal, hard-working colleague as well who has contributed a lot in making the company successful.
To Not Put Your Family in Distress
The most important reason to get an estate plan is to protect your family from any kind of stress. When you leave this world behind, your family will be in grief and at a time when someone is dealing with a precious loss, it can become extremely hard and stressful to deal with an estate plan.
That is why you need to make sure that you have an estate plan that will not put any burden on your family. You also need to decide who will execute the will and who will be the trustee so it will create no complications for your family at all. You should also consider making your funeral arrangements in advance with the help of your estate plan. Because dealing with a funeral and grief at the same time can be overwhelming for your loved ones.
It Will Give You Peace of Mind
Having an estate plan in position will make it easier for you to sleep at night. It will be solid proof that even if you are not with your family, they will be taken care of. Especially for someone who has children, it can be a really peaceful thing to know that their future is safe. You will also want to make sure that they will be looked after by someone so you can include the person you trust the most as the guardian. It could be anyone from a close sibling to a trusted friend. Knowing all this can lead you to live a happy life as well.