Although we all know estate planning is important, most of us would prefer to put it off. However, it’s one of those things you simply need to get done or the repercussions could be severe for those most important to you. Let’s discuss some of the reasons you should get started today.
It’s Not Just for When You’re Deceased
No one wants to think about their own demise, which is one of the main reasons they put off planning their estate. It’s important to remember, though, that estate planning is not just about when you pass away.
What happens if you were to become incapacitated? A tragic event could leave you disabled too. With a drafted estate plan, you can rest assured that someone is available—someone you trust—to look after your affairs. Furthermore, they’ll have clear-cut instructions to follow for doing so.
Avoid Unnecessary Taxes
That being said, obviously, estate planning is central to planning for your passing. One of the major disadvantages every family faces when their loved one passes without an estate planned is taxes. Income and capital gains taxes can strip your savings, leaving far less left for your loved ones.
With a well-drafted plan, estate taxes can be greatly minimized or even avoided altogether.
Ensure Your Wishes Are Honored
Without an estate plan, you’ll be lucky if all of your wishes are properly honored when you’ve left this life. Once you’re gone, divorces in your family, lawsuits and creditors can all challenge who owns what you’ve left behind. Your spouse could also remarry someone with children, who would then have some entitlement to your money.
Once again, with a solid estate plan, you’ll have your wishes spelled. Challenging them will be difficult.
In fact, with a “no-contest” provision, your plan will be virtually bulletproof. Such a clause will most likely discourage anyone from challenging it.
Help Inexperienced Loved Ones
Just because your loved ones get your money as you planned does not mean they will use it as you would have liked. Some of your family members may not have experience with the amount you’re leaving them.
Fortunately, you don’t have to be around to guide them in using the money responsibly. Your estate can actually include instructions that the beneficiary has to follow. For example, you could leave some of it as a college fund or insist that it goes into an account that can’t be touched for a certain number of years.
You can even take things a step further and stipulate that certain funds can only be accessed by family members after they’ve completed certain milestones in their life. This will also protect your money from depletion if your heirs do make poor decisions.
With Clear Counsel Law Group, you don’t have to put your planning off to another day. Our firm was created by the joining of two others, giving us unrivaled experience in the area of estate planning. Call us today at 702-522-0696 and we’ll work with you to ensure your wishes are known and followed.