Estate Planning: What Is It, and Why Do You Need One?

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We will all leave this world at one point or another. That’s an inevitable part of life. Although there are plenty of questions that we want to find the answers to, perhaps it’s also essential to pay attention to what we’re leaving behind.

Over the years, no matter what type of job you’re in or what hobby or passion you pursue, there’s a considerable chance that you have accumulated a fair amount of properties or assets. What do you think happens to these things when you die? Well, now is probably a good time to think and talk about it.

What Is Estate Planning?

An estate plan is essentially a written layout of everything that you own and what you want to happen to them in the event of your death. That’s perhaps the simplest way to put it. However, this doesn’t mean that you can whip up a sheet of paper right here and now and start listing all the things you own.

A good estate plan needs some key elements for it to be executed properly. There are plenty of laws surrounding estate planning, so it would also be necessary that you have an attorney when you write it. Learning about these laws and updating your will as time goes on are also important factors in estate planning.

Who Can Have an Estate Plan?

Many people assume that just because they don’t own a business, multiple real estate properties, cars, and other valuables mean that they can’t or shouldn’t have an estate plan. However, an estate plan is not just about your material properties.

Estate planning includes instructions on how you want your children to be taken care of, who should provide care for them, and even how you want to be taken care of if you get incapacitated. That’s why everyone should have an estate plan.

In fact, write your estate plan while you’re in your prime because when your mental state declines, it will be harder for you to make better decisions. At times like these, your family would have to find an attorney for trust litigation to confirm the validity and execution of your estate plan.

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Why Is an Estate Plan Important?

If you don’t plan, things can get messy, and that’s also true for when you go. Without an estate plan, your family will have a hard time claiming ownership over your assets. Not to mention the thousands of dollars they could spend just for the process. With an estate plan, you and your beneficiaries are protected by the law. Let us show you what we mean by that and why it’s important.

Protect Beneficiaries

You obviously can’t make decisions for your assets or estates once you’re gone. This means that whether or not you wanted some of your possessions to belong to a specific beloved relative, you have no control over it anymore because the state will be the one to decide on that matter. However, having an estate plan guarantees that your assets will be passed on according to your requests.

Protect Children

It’s no secret that the next accident is just waiting to happen. Although we all don’t want to die young, we have to be prepared for that possibility. We need to figure out how our children will be provided for in case of our untimely death. This is why an estate plan also includes a last will and testament.

Avoid Taxes

If there is anything at all that’s eternal in this world, it would probably be taxes. You can’t really rest peacefully knowing that the government is taking a huge bite out of the inheritance you left your spouse with. No matter how basic or simple it is, an estate plan can save your spouse from some of these taxes. There’s even a possibility that all of them will be waived.

Get Rid of Family Mess

We don’t know about you, but we don’t really want other people meddling with some of our family problems. Unfortunately, that’s almost unavoidable without an estate plan. If you let the court decide who should get your inheritance, this can be the match that sparks the war between family members. An estate plan is protected by the law, which means it’s almost always the final word.

No matter where you stand in life, it’s important to have an estate plan. It’s the only guarantee that your children, friends, and family will get everything that you want them to get. After all, they are why you work hard, and it would be a waste if they don’t get to treasure your estates just because you failed to prepare for it.

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