Estate planning is important for all families to have in place. While dealing with grief, you do not want your family to be struggling to manage the estate you have left behind. Having a solid estate plan allows you to have all of your assets taken care of according to your wishes. Continue reading for several benefits of having an estate plan in place.
Providing for your family
By pre-determining the beneficiaries of your assets and how your assets will be handled, you will be able to assist in providing for your family after you are gone. You will be able to help put your family in position to take care of themselves. If you have dependents, you are also able to appoint guardians to care for your dependents.
Protecting your Beneficiaries
You do not need to be “rich” to need an estate plan. Even as a middle-class individual, it is smart to have an estate plan to protect your beneficiaries. By deciding who will receive what out of your asset, your family will not have to go through probate court. If you do not have heirs designated, the courts must decide who will receive your assets.
Saving your Heirs from Major Taxes
Utilizing an estate plan may help protect your beneficiaries from major tax hits through the transferring of assets. You can reduce the federal and state estate taxes that will be owed, as well as the state inheritance taxes. You could also potentially reduce the income taxes that hiers would have to pay on their new assets. Without an estate plan, your beneficiaries could be burdened with major taxes that cut into their inheritance.
Planning for your own needs
While estate plans are mainly known for being necessary after death, they are useful to have in the case you become incapacitated and unable to make your own decisions. In an estate plan, you can assign a healthcare proxy or power of attorney who is in charge of making decisions on your behalf. Be sure to discuss that possibility with someone you trust to ensure your wishes and needs are met.
Legacy Planning
In an estate plan you are able to decide how you want to be remembered. Most people choose to make a philanthropic contribution to charity or create a family foundation. You could also have a charitable trust created or have a donor managed fund to support causes that are important to you and your family. By having an estate plan, your intentions and wants for your memory to remain alive can be fulfilled by your family.
Preventing Family Conflict
Having an estate plan with your beneficiaries set in place may help prevent your family from arguing over who receives what out of your estate. Your family will also not need to go to probate court where a judge makes decisions on how your assets are divided without your intents and wishes involved. While a family is in grief, the last thing they need to do is argue over your estate.
Developing an estate plan can be easy with the help of an advisor. The experienced advisor will help you through the difficult questions of estate planning and keep your wishes the priority.
Estate planning should be an essential part of your financial plan so that you can make sure that your heirs are provided for in the best possible way. To learn more about how I can help, give us a call at (402) 454-7204 or email me at jason@fp-wealth.com
Sources:
https://www.fidelity.com/viewpoints/personal-finance/do-you-need-an-estate-plan