It looks like individuals prefer to invest time to planning a vacation, selecting a car to buy, or evening choosing a spot to have lunch than they do to estate planning—choosing who will get their assets after their demise. Of course, estate planning may not be as interesting or fun as booking a trip to the Bahamas or checking our restaurant reviews. However, without estate planning, you wouldn’t be able to choose who will inherit those things you worked so hard for.
Estate planning may appear like one of those plans that is designed for the rich. However, it is not! Estate planning is for the rich and the poor. Without an estate plan in plan, settling your estate after your demise could have a long-lasting, and costly effect on those you care about. So what would it rather be? Plan your estate or watch your loved ones go through difficulty after you demise?
To ginger you or ensure that you understand why an estate plan is very important, I have outline some of the importance of making this plan.
- It helps protect beneficiaries
If estate planning was regarded as one of those plan that only rich individuals make or need, that has changed. You see, today, several middle-class families’ need a plan in place should in case something happens to the breadwinner of the family. Moreover, you don’t have to be very rich to succeed in the stock market or real estate, both of which yield assets you’ll want to transfer to your heirs.
Even if you would be leaving behind a second car, if you don’t decide who gets the asset after your demise you won’t have any control over what happens to it. And that is simply because the primary goal of estate planning is choosing beneficiaries for your assets, regardless of what the asset is. Without an estate plan, the court will choose who gets your assets, a process which is time-consuming and frustrating.
- An estate plan protects minors
No one imagines dying young. However, if you are the parent of a minor, it is important that you prepare for the unthinkable. This is where the will portion of an estate plan is introduced. To make sure that your children are well catered for, especially in a way that you approve, you’ll want to designate their guardians in the event that both parents die before the kids become adults. Without a will that consists of the names of a guardian or guardians, the court will step in to decide who will bring up the children.
- An estate plan prevents family scuffle
Of course, I guess you are very familiar with the horror stories. Someone dies and the war between family members starts. One sibling may think that he deserves the house while the other, being the eldest, may object and from there a scuffle starts. Such disagreement get ugly and end up in court, with family members pitted against each other.
Stopping these fights before they start is another reason why estate planning is very essential. This plan will enable you to designate an individual who will control or manage your finances and assets if you become incapacitated or if you kick the bucket.
- Protect loved ones from paying huge taxes
One of the primary aim of creating an estate plan is to protect loves ones, which also means providing them with protection from the Internal Revenue Service (IRS). Important to estate planning is transferring assets to beneficiaries while ensuring that they don’t pay much in taxes.
Even a little estate planning can help couples lessen much or even all of their federal and state estate taxes including state inheritance taxes. There also exist ways to lessens the income tax beneficiaries may have to remit. Without an estate plan, the amount of money owned by your beneficiaries to the IRS will be pretty much.
Who is an Estate Planning Lawyer?
An estate planning lawyer who is also regarded as an estate law attorney or a probate attorney is an experienced and licensed law expert who has an in-depth understanding of the state and federal laws that affects how your estate will be shared, managed, and taxed after your death. Contact an estate planning attorney Buffalo, NY for your estate plan.