Do you have an estate plan? If not, there’s no point in delaying such an action, as tragic events occur when least expected.
Although most individuals refuse to contemplate the scenarios that would take place after their death or physical/mental incapacitation, a well-devised plan is crucial for protecting your children and loved ones. Financial planners can assist you in dividing your assets and leaving instructions for the court to follow in the event of your incapacitation or death.
The benefits of financial estate planning are endless. Learn more about its importance below.
Provide for your family
The importance of such planning lies in the possibility for individuals to provide for their families even when they’re no longer alive. By devising a successful estate plan, your family can enjoy a comfortable life with the same standard of living as before. See this page for a detailed definition of estate planning.
In the unfortunate event of your death, your family members will at least not be burdened by financial difficulties. They can be each other’s support throughout such a taxing period without feeling any financial strain.
Protect your children
Another benefit of estate planning is protecting your children in case you and your partner are unexpectedly killed in an accident. Every parent is supposed to provide an answer to the question of what’s going to happen to their kids in case he/she dies prematurely. By leaving a will, you’ll be in control of the future of your children if you pass away before they turn eighteen.
Moreover, the court will be obliged to abide by your instructions related to guardian appointment, financial wishes, and other important matters. If there’s neither a will nor a plan, the fate of your loved ones will be in the hands of the court. Why let the court make such crucial decisions when you can devise a plan that works in favor of their well-being and financial security.
Additionally, parents can restrict the access of their kids to the assets until they become mature enough to handle the assets on their own. Consequently, you’ll prevent them from wasting the wealth and getting spoiled. This URL, https://www.thebalance.com/protect-your-kids-last-will-testament-3129232, explains how to protect your children with a last will and testament.
Avoid family disputes
Financial estate planning is considered essential in avoiding family disputes, which often stir up after a family member dies, leaving no will. It’s common for siblings to start a row in view of who deserves a more considerable portion of the inheritance. These situations only get worse if a person has multiple marriages, especially if he/she has a child from each marriage.
The division of assets is no simple task, requiring careful consideration on the part of the testator. An estate plan is not only necessary for dividing your assets on the assumption that you die but also if you experience mental incapacitation. In such a case, you’ll have to appoint a family member to manage the finances on your behalf.
Lower estate taxes
Another benefit of timely estate planning is minimizing the expenses involved in the process of inheritance, such as the federal estate taxes, attorney’s fees, and court expenses. There are numerous investment advisor firms providing estate planning services to clients who wish to pass their wealth to future generations. By creating such a plan, you’ll exempt your beneficiaries from this financial burden and increase the amount of wealth they’ll inherit. Your loved ones won’t have to splurge thousands of dollars on legal fees and taxes, as well as waste months until gaining access to the assets.
Making the decision process easier
An important reason for every person to have an estate plan created is to make decisions easier in times of crisis. When tragic events happen, family members are in charge of making heart-wrenching decisions, such as deciding whether to pull the plug on a parent, sibling, or spouse in a coma. If the person is already dead, individuals need to make other vital choices like choosing a burial location or giving their blessing for cremation.
Therefore, estate plans serve the purpose of making these choices less painful to make. In your plan, you can specify your desires regarding the way your remains should be handled.
Additionally, it’s essential to give your approval for turning off life support if you’ve been in a coma for a longer period, as no family member would have the courage to do it without feeling guilty. There is no person better qualified than yourself for making such distressing choices. Your loved ones would be incredibly grateful for removing such a burden from their backs.
There is nothing wrong with leaving a testament while still young.
Everyone who cares about their loved ones would plan their asset distribution on time!