Estate planning is not only for the wealthy and famous. It is also for anyone who has assets of any size, no matter their social status. Estate planning means deciding and securing your heirs and beneficiaries who will get your assets following your passing. Also, a well-thought-out estate plan has a lot more complications than just security for future generations. An estate planning expert from GLP financial group will walk you through the benefits of having a plan in place. Read on to know why estate planning is important:
Prevent Unwanted Inheritors
Did you know that the state will have a say in your estate if you have no will in place once you die? Wills and succession act states what happens to your assets when you die without a will. When this happens, your wealth can end up in the hands of unintended beneficiaries. Estate planning experts can resolve this issue by making sure your assets go to your desired inheritors.
Minimize Estate Tax
Inheritance and estate taxes can bring a substantial loss to your estate. They could be an unwanted burden to the people you love. Thankfully, you can minimize or even eliminate estate taxes when you set up joint partner trusts. An estate planning professional will help you understand your options in this regard.
Protect Your Young Children
Nobody wants to die young, particularly, if you have children; however, you will need to be prepared for this tragedy. This means you need to set up a will, which is only a part of your estate planning. You can designate how your minor children will be taken care of and by who in your will. Also, you must state in your will what items in your estate these children will inherit when they come of age. If you do not have a will place, the court will make these decisions for you including who will raise your kids.
Avoid Family Conflicts
It is common for families to fight over assets following the passing of a loved one. This occurs more often than you would think and a lack of planning can lead to family conflicts.
In your estate plan, ensure your pick somebody who will make decisions for you after your passing or when you become mentally incapacitated in your lifetime. Also, you must decide who gets certain assets as well as when and how they will receive them. With these arrangements, you can be sure your assets are handled based on your wishes and prevent your loved ones from fighting over ownership of certain assets.