Estate planning comes with a myriad of benefits. Designed to help you put your future finances in order, estate planning is an important component of anybody’s life. So, if you haven’t considered estate planning, you are missing a lot. Here are the main benefits of embracing estate planning.
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Family Interests
If you don’t want your family to get less, think about estate planning. Plus, having a plan ensures that your family gets what it deserves quickly and efficiently. So, don’t leave your family in limbo. Have an estate plan. Remember, you don’t know when your time will be up. With such a plan, you will leave your family in safe hands. In particular, your family won’t struggle with bills and other expenses. It won’t face unnecessary financial burdens in the future.
For the Sake of Kids
Do you love your kids? Probably, yes. Well, then think about estate planning. With estate planning, you have the surest way of ensuring the wellbeing of your kids. Things like accidents won’t strain your family. This is especially important when your partner dies. An estate plan will ensure the kids continue with life without any hassles. Things like picking them from school to taking them for daycare services will be sorted by an estate plan. Have an estate plan today and safeguard the future well-being of your kids.
Minimize Your Expenses
Do you want to minimize your expenses—especially when it comes to lawyer’s fees and court expenses? Well, think estate planning. An estate plan ensures that you spend less in terms of attorney’s fees as well as court expenses. Without a state plan, you are left at the mercy of the court. The court will be forced to take over everything. From distributing property, determining the guardianship of your kids, to financing your business, not having an estate plan can cost you a lot.
Get Property to Family Swiftly
After you are gone, it can take time for your family to get money left behind. With an estate plan, your family will get the money to sort out the bills within days. However, if there is no plan, it will take 3-9 months to get the money. So, if you love your family, get an estate plan. It will make your family’s life easy when you are gone. Remember, your family will need to pay medical bills, funeral expenses, and other bills. Don’t strain your family. Have an estate plan.
Difficult Decisions
Your family can be in difficult situations. Not having an estate plan can complicate things further. For instance, your spouse may be in a serious condition like a coma. How will you handle his/her remains? Making these decisions can be a nightmare. However, having an estate plan will ease this burden. In the plan, you can spell out how you will like to spend the rest of your life. It will give your family peace of mind.
Minimize Taxes
Not having an estate plan will reduce the takes you pay. In fact, it is considered to be one of the best strategies for reducing taxes paid to the state. It’s an effective tax planning tool.
Easier Retirement
Matters to do with retirement can be challenging—especially when you are gone. Without an estate plan, your family will tarmac for long before accessing your retirement benefits. However, an estate plan makes retirement easier and straightforward. Plus, having an estate plan ensures that you qualify for a healthcare plan like Medicare.
Incapacity
Estate planning goes beyond death. Things like car accidents can turn your life around. In particular, serious accidents can incapacitate you. Even more, certain conditions can leave you incapacitated—leaving you incapable of managing your financial affairs. However, having an estate plan ensures that your financial affairs are on track while you recover. Things like paying bills while in a coma won’t affect your recovery process. In a nutshell, an estate plan ensured that things are done according to your wishes.
Give Back to Society
Do you want to give back to society in the future? Are you after contributing to a noble idea? Do you want to support the needy? Well, if so, think estate planning. An estate plan gives you the opportunity to commit to a noble idea in the future even when you aren’t around. It will spell out the money to be spent in supporting any noble idea you might be thinking about in the future.
Business Running
Having an estate plan is important—especially if you are running a small business establishment. Besides helping it thrive, an estate plan will help your business run smoothly. It won’t be affected by a lack of funds. Remember, when you are gone, the business will automatically dive into problems. However, an estate plan ensures that your business runs smoothly even when you are gone.
Create A Good Estate Plan with These Tips and Tricks
Estate planning isn’t just for the rich. You too, can have a good estate plan and secure your family’s financial future. Remember, without a proper plan, your family may struggle to pay essential bills. Still more, it will take time for your family to secure the funds. In a nutshell, having an estate plan is like having financial freedom. Create a good estate plan with the following tips and tricks:
Good Team
Estate planning involves a lot of technicalities. That’s why you need experts on board. In particular, you need a team of experts comprising financial advisors, tax professionals, as well as attorneys. Assembling a good team will help you get all the steps right. These experts play key roles when creating an estate plan. For instance, financial advisors ensure that you comply with tax rules. On the other hand, lawyers are there to ensure that the estate plan is legal.
Document Your Wishes
In the estate plan, clearly spell out all your wishes. Here, indicate what you will wish to happen to those probate assets of yours. Do the same to the possessions. Remember, when you are gone, the state will have to make certain decisions. Having a plan means that you have complete control over what you will want to happen to your assets in case you die. Your family won’t experience hard times solving these matters. Ensure that the plan contains the following crucial components:
- Proxy—this is the healthcare power of attorney. Here, you will assign somebody you trust the powers to make healthcare decisions.
- Financial power—Here, you will be required to assign somebody to make financial decisions.
- A living will—In the living will, you will clearly state how your assets will be divided.
- (HIPAA) Release form—This form gives access to the people you trust to your health information
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Guardianship for Dependents
You should leave your kids in good hands. Thus, the will should include guardianship. Designate guardianship to a responsible person. In particular, you should leave your kids to a person you trust. For instance, it may be your mum, dad, auntie, etc. However, before leaving guard ship to anybody, consult first. Talk to him/her first. Obtain consent. You can also name a couple as co-guardians to your kids. However, talk to your lawyer first before doing it.
Trusts
Trust is like a container that will hold your money. In the trust, you decide the heirs of your money and the amount each will receive. The trust should clearly state how everything will be divided. A trust eliminates unnecessary conflicts. It will be executed according to your wishes.
Avoid Probate
The process of verifying the will is known as probate. The verification process should be done in court. This process can be long, slow, and complicated. It can also be expensive. That’s why you should avoid it at all costs. One of the best ways to avoid probate is to discuss the probate laws with your estate planning lawyer. Doing so will keep you updated as far as what you expect is concerned.
Familiarize Yourself With IRD
Besides Federal Estate Tax, you should also familiarize yourself with the IRD. IRD tax can hit the inheritors hard. Thus, factoring in this type of tax is very important. When you die, your heirs will have to pay this tax. This includes savings bond income, sales commission, as well as retirement payouts. That’s why you should talk to your tax expert to guide you on this element. He/she will give you all possible tax scenarios.
Think About Digital Assets
Take into consideration digital assets like treasured photos, important documents, and even videos. Decide what will happen to assets kept on social media. Have a clear plan on what will happen to the digital files.
The Bottom-Line
If you want to secure the future of your family, think about estate planning. With estate planning, you have a tool that will give your family financial freedom when you’re gone. So, don’t be left behind. Consider estate planning. The above are the real benefits of investing in estate planning. Plus use the above tips to create the best estate plan.
