Estate planning is something many of us put off until it is too late. This is a mistake because estate planning includes making certain decisions about how to distribute our assets after we die. Whether it’s a large inheritance or small, these decisions can affect your loved ones and help you keep some control over the process as well. You can get help here from an estate planning attorney if you want to know how to do estate planning.
A good estate plan can also help protect assets that you have worked hard for throughout your life. And an attorney will be able to guide you through how different estate planning techniques will work for your assets.
There are many more reasons why estate planning is important, but here are four that stand out:
- An estate plan protects your beneficiaries/loved ones
Estate planning is so important because it provides a way of protecting your loved ones. When you die, your estate can be the subject of contest from people who you might not want to inherit from. An estate plan gives your survivors the ability to decide who should receive what after you die and can also help prevent squabbles among family members.
- Estate planning protects young children
It is incredibly valuable to be able to protect young children from inheritances that could negatively affect them. You can even see the benefit of this by looking at the estate planning of celebrities like Michael Jackson and John Lennon, who benefitted significantly from their estates after they died.
- An estate plan spares heirs a big tax bite
Tens of thousands of dollars in taxes can be saved by preparing an estate plan. An estate plan can also help keep your heirs from paying too much in taxes. For example, if you have children, it is a good idea to transfer any home that is being sold or refinanced into their names to avoid IRS capital gains tax.
- Estate planning eliminates disputes in the family
Some people might begrudge your ultimate decision on how to distribute your assets after you die. By having an estate plan, you can make certain that everyone in your family is taken care of and that their debts are paid off. Without an estate plan, disputes may arise between family members over money and assets.