Estate planning is more than just creating a will. It is not only done to ensure proper distribution of your assets but for maximized benefits for your family as well. Estate planning which was once considered for the people with high-net-worth, has become a top priority for even middle-class families nowadays. Everyone seems to be planning for the situation when anything unexpected happens to the family’s breadwinner.
The emotional trauma due to the departure is already a lot to cope with, and having to deal with the administration costs and dicey future arrangements can get far more stressing. That is why to take care of future generations or the young children, the will portion of an estate planning has to be brought in. Here is how doing that can potentially save their lives from devastating consequences after you passing away –
- Decide Where the Assets Go
You cannot take your hard-earned money with you, but you can make a call as to what goes where or who receives what part of that money in case any uncertainty hits your life. Without a plan, the court will decide the segregation of your assets and that sometimes take years to resolve. Also, the court cannot know the background of family disputes and might end up giving free access to cash to someone who didn’t deserve it in the first place.
- Protect Loved Ones with Special Needs
At times, there can be a spouse, child, or an elderly parent who is not physically or mentally fit or are disabled. Their disability can be by birth or a result of some sort of illness. Whatever be the reason for their dependency on you, you want to make sure they are duly taken care of after your death. Of course, such members can be entitled to public health benefits, but they are minimal or not sufficient enough. Hence, making a provision with the guidance of an estate attorney for their financial support is essential.
- Safeguard your Children
None of us wants to think of dying at a young age. The mere thought of who will look after the kids or how will they cope up with emotional and financial turmoil is frightening. But, because death is inevitable, you need to brace yourself for this tragedy. You should involve a will and designate who inherits what when they attain a legal age. You should also think of the guardian who can raise them with great love and care.
- Minimize Taxes
Federal estate and state inheritance taxes are on the pricier side of the scale and can leave your heirs with a significantly lesser amount of assets, property, or money than you planned. However, with proper and timely planning of your estate, they can have everything transferred to them with the least amount of tax burden possible. The spouses can even share one another’s exemption as well. In all, the transfer process is easier and also hassle-free.