What is the Importance of Estate Planning?
There are many benefits when it comes to planning your estate. Not only will you save your family from needing to make difficult decisions and get property to loved ones, but you will be able to secure the future of your family in many ways!
Below are some reasons why you should plan your estate, no matter what your situation:
- Keep your children away from Child Protective Services -- Name a trusted guardian.
- Provide for your family -- Ensure they do not face financial ruin.
- Minimize expenses -- Most of your money could go to court costs without a plan. This is money that could go directly to your family.
- Ensure your loved ones receive property quickly.
- Make sure your business is taken care of -- Ensure it does not fall apart or cause more hardship on your family.
- Make retiring easier -- Plan government benefits like Medicare to reduce your costs in healthcare.
- Prepare for incapacity -- In the event that you are incapacitated in an accident or medical matter, there is a plan in place.
- Support a charity -- If you have a favorite cause, you can make a difference in peoples' lives.
I Am Not Wealthy, Why Do I Need to Have an Estate Plan?
Many people have the misconception that estate plans are only for those with high-net-worth; however, this is far from true. An estate plan provides a safety net even for those with a small number of assets. Our lawyers explain why you need to have an estate plan, even if you’re not “wealthy.”
Assets Will Go to Intended Beneficiaries
Regardless if you only own a house or funds in a savings account, it’s important to have a comprehensive estate plan in place. You would want your hard-earned money to go to your loved ones, but you need an estate plan to ensure that happens after you pass away. With an estate plan, you can create a will that lists the beneficiaries of your estate. Without an estate plan, the court will decide who will receive your assets.
Protects Your Young Children
If you are a parent of young children, a will can also extend protection to them if something happens to you. You can designate their guardians in the event that you and your spouse pass away before your children turn 18. Without a will and guardianship clause, a judge will make this important decision.
One of the greatest benefits of an estate plan is that it helps you avoid taxes. Your assets will be transferred to your family with the smallest tax burden possible with a comprehensive estate plan. In many cases, families with an estate plan can reduce much (if not all) of their federal and state estate planning taxes or inheritance taxes. Without an estate plan, your family could be left owing the government a substantial amount in taxes.
Avoid Family Arguments & Confusion
In many cases, asset distributions can lead to conflict and confusion. One family member might have the misconception that they would receive a certain number of assets, and they didn’t. A comprehensive estate plan can help you avoid these unpleasant situations. Everyone will know that your assets, no matter how small, are being distributed as you wished.
When someone dies, their property, money, and possessions need to be sorted. Gathering all assets, paying all taxes and debts, and distributing what is left over to the decedent’s family is the probate process. With a trust, you can avoid the probate process altogether.
A trust is a written agreement that details how your property should be managed during your lifetime and distributed after your death. The arrangement allows a third party, or trustee, to hold assets on behalf of you and your beneficiaries. After you pass away, your loved ones can avoid probate, and they can get their assets faster. A trust can also help them reduce taxes.
Make an Estate Plan Today
It is never too early to create a plan for your future. Hurtik Law & Associates is available to help you formulate the right plan for your needs. Reach out to our Las Vegas estate planning attorneys today to schedule a free consultation. We can help you evaluate your needs and goals for your estate plan and walk you through every step of the process to ensure your arrangement is legally enforceable.