In spite of the fact that the term ‘estate planning’ sounds fancy, it is not just meant for the wealthy and the rich. The word ‘estate’ has a much different meaning than what you conceive it to be. After your demise, who will inherit your estate and all your life assets? This is one of the most important parts of estate planning.
If you’re smart at planning your estate, you can protect your family and the young children by letting them inherit the property and avoid overpaying the taxes. However, without a proper estate plan, you can never choose who gets what. Though a real estate planning attorney will always help you make sound decisions about your estate, here are a few reasons for planning your estate.
- You can decide who acquires your assets
Estate planning is not something for the wealth. Most families, if not all, have some kind of assets to leave back for their heirs. The property can be in the form of a second vacation home, your ancestral home, real estate investments, stock portfolio, or even sometimes the most prized possessions. In case something happens to the breadwinner of the family and he/she expired, the aforementioned items are supposed to be inherited by the designated heirs. So, an estate plan is crucial.
- You can safeguard your family, especially the young kids
Who would even want to think of dying young? When you have children, this is certainly the last thought that will come to your mind. But in case the inevitable happens, what’s going to happen to your kids? When you have young children at home, you should always be prepared for such tragedies. You just have to set up a will and designate which children will inherit what.
- You can nullify the pre-written will and overwrite it
You may not be aware of the fact that your state has already written a will for you and this is often called intestacy statute. According to this pre-written will, your assets will most likely not be distributed in the manner that you want. Hence, you should plan your estate separately so that you can override the statute. As there are pros and cons to each option, you should hire an experienced attorney who can assist you with estate planning.
- You can exercise your right of assigning a conservator
It is not only important for you to appoint a guardian for your wards but also for your estate. He is called the conservator and he will manage all assets that have been designated for the children. You will leave all instructions in your estate as to how you want your assets to be disbursed, and this person will make sure all your wishes are followed through. This is when you need to decide whether or not you should set up a trust or a will.
Therefore, if you’ve still not planned your estate and you’re worried about the valid reasons, take into account all the points mentioned above.