Do I Need an Estate Plan? Why Is Estate Planning Important?
Estate planning is not one of American’s top priorities. According to a 2016 CNBC poll, 64% of Americans have not had a will prepared. Half of those surveyed either feel they do not need a will or they just have not found the time to make one.
You may be asking yourself, “Who needs estate planning? Do I need estate planning? If so, do I need an estate planning attorney?”
Why is estate planning important?
If you want your estate to end up with your loved ones after you are gone, you will want to explore various types of estate plans. Is a living trust the way to go? Or a last will and testament?
Let’s look at some of the reasons why estate planning is important and then you can choose the right path for you.
Why is Estate Planning Important?
Estate planning is a term used to describe the act of making a will, choosing an executor and/or preparing other important documents such as a health care proxy and power of attorney.
Though you may not have a million-dollar estate, you will still want to have a say in what happens to it when you die.
Consider these reasons for estate planning.
1. Estate Planning Can Reduce or Eliminate Estate Taxes
If you are asking yourself, “Why do I need an estate plan?”, eliminating the need for paying additional taxes may be a top reason.
You have worked hard for what you have and finding the most tax-efficient way to transfer it to your children or another beneficiary is the smart thing to do. It can be a complicated process, however.
If you are asking yourself another question like, “What is an estate planner?”, you will find that you need one. An estate planner is a professional who helps you sort out all of the complicated tax laws and works to create the best plan for turning over your estate after you pass.
2. Not Having an Estate Plan Can Cause Family Chaos
You know it happens…a family member dies and the fighting over the estate begins. One child or grandchild may think they deserve to be in charge, one may think they deserve more money, one may want all the jewelry, etc.
An estate plan allows you to choose an executor of the estate in the event that you become incapacitated or after you die. It also allows you to explicitly state to whom you would like your assets to go. It will eliminate family quarrels if everything is spelled out for them.
3. Peace of Mind for Families with Young Children
None of us want to think about dying and leaving behind young children, but don’t you want to be prepared in the event that it happens?
Creating a will and naming guardians for your children will prevent the need for the court to intervene.
You can specify who will raise your children and the manner in which you would like them to be raised. You can also rest assured that your assets are transferred to them either in a trust or for their care as they grow.
Got An Estate Plan?
You have just learned a few of the reasons that answer the question, “Why is estate planning important?” We at Indigo Family Law can help you with estate planning and answer any questions you may have. Contact us today.