Some people think estate planning is just meant for wealthy people, but this isn't so. It's usually a critical financial planning strategy for everyone. Unfortunately, most people don't know the term "estate" has a broad meaning. They just associate it with antiques, art, yachts, fine jewelry, mansions, cars, and stock portfolios, among other valuable possessions. However, an estate could include life insurance, bank accounts, medical insurance, websites, and social media accounts. Sadly, these things may end up in the wrong hands if you don't take estate planning seriously. So it would help if you decided who receives what and put it on paper to avoid family disputes. See why you should plan your estate in good time.
You Decide Where Your Assets Go
It's one thing to identify the beneficiaries, and it's another thing to ensure the process is legal and binding. Estate planning allows you to decide who inherits your real estate investments, stock portfolios, or vacation home, among other possessions. So plan yours early because you won't be on this earth forever. Most people die before they decide who takes what, making life quite difficult for their family members. Actually, life becomes unbearable for them because the court intervenes and distributes the estate, perhaps against your wishes. Fortunately, you avoid such ugly surprises when you plan the estate in good time.
You Protect Your Young Children
You, of course, don't want to die young, but it can sometimes be an inevitable tragedy. For this reason, you should prioritize estate planning to ensure your kids are safe just in case the unexpected happens. Set up a will because it's a critical part of your estate plan. Ensure you outline what's designated to your young children and the kind of care they deserve. And since you don't want to make mistakes, let an estate planning lawyer help you draft the will to make it more effective.
You Avoid the Probate Process
Family strife could be inevitable if you don't plan your estate. Actually, your estate could go to probate, which could cost your family a lot. The probate process is quite strenuous and costly. Here, the court assesses your estate's value, supervises estate administration, pays off your taxes and bills, and distributes your possessions to the heirs of its choice. The process can take several months or even years. The court also appoints an executor who, in return, gets a portion of your estate as an administrative fee. Luckily, timely estate planning helps your family avoid probate and its intricacies.
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Share17 March 2023
I was blessed to have grown up in a home with loving supportive parents. They both worked extremely hard in order for me and my sister to enjoy a better life than they had. Financially, they bought me a new car when I was sixteen. They also paid for my college expenses. Many parents do the same for their kids. They want to provide for them in the present while safeguarding their futures. One way parents can invest in their kids’ futures is by placing money in trusts that their children can utilize when they reach a certain age. A reputable attorney can establish beneficial trusts for your kids. On this blog, you will learn about the benefits of consulting with an attorney about setting up trusts for your children.