13th Jan 2015
Completing an estate plan is actually one of the most important things you can do for yourself and your family. There are several reasons why this is not only an important consideration, but one you should make right now if you haven’t already done so. Putting together an estate plan is preparing your beneficiaries by having a legal document articulating the distribution of your assets in the event of your passing. Preparing this documentation is essential, and some of the reasons for this will be detailed in this article further for your consideration.
5. Peace of Mind
An estate plan gives you peace of mind in knowing that your beneficiaries will be cared for in the event of your passing. Besides funeral expenses, your beneficiaries will be overwhelmed with dealing with such matters as distribution of your assets if these matters aren’t resolved beforehand. Your passing alone will leave enough grief on those you leave behind that including financial matters on top of it could cause pain and suffering that you would never want your beneficiaries to ever deal with. Plan for your passing, including distribution of your assets and how your funeral arrangements will be made. Knowing that your beneficiaries will not have to resolve these issues with the pain of your passing in mind can be a great source of comfort and peace of mind regardless of your current health or situation.
4. Creating an Estate Plan Can Save Your Beneficiaries Money
Creating an estate plan not only manages distribution of your assets, but can also allow for tax benefits that would not be available if the state was left to divide your assets for you. There are many tax breaks you may be eligible for. While only an attorney can properly advise you of which tax breaks you may be eligible for, it’s important to consider the issue of constructing an estate plan sooner rather than later. Ensure that all assets are covered, including funds in any bank accounts and property. Keep in mind both in state and out of state property and general assets when constructing your estate plan. Understand that establishing a living trust correctly with all assets in mind can offer you tax breaks that will ensure your beneficiaries get the most out of your assets without them disappearing without reason.
3. Keep Your Business Alive
If you own a business or several businesses, it’s important to understand that not having an estate plan can actually result in your business falling apart. You’ve spent time developing a company from the ground up, or at least managing it for someone after it was handed down to you. Regardless of the situation, why let your legacy fall apart if something should happen to you? Don’t just plan for distribution of your assets, but also plan how your business or businesses will be managed without you around. If you plan to have a beneficiary take over, plan for this in your estate plan and through any other required business documents your attorney may recommend for you based on the size and type of business you manage as well as state regulations.
When planning for management of your business, ensure the leaders you place in charge will not only maintain the success of your business, but also carry it into the future with the same business ethics upon which the company was founded and thrived upon prior to your passing. Business succession planning is an important consideration for your company regardless of circumstance. Only your attorney can advise you of the best way to proceed in planning.
2. Prevent Family Arguments
The last thing anyone wants in the event of their passing is to leave behind both a grieving and a disputing family. Family disputes over estate plans are common and quite hectic. Disputes over individuals that left no estate plan at all behind are even worse. This is why it’s important to not only leave behind an estate plan, but also to ensure that you take time to cover all your assets in your estate plan and ensure that they are distributed responsibly. Don’t just consider giving everyone a little of everything, but also consider who will manage your assets best to the benefit of themselves and others. It’s important to consider all these things when preparing your estate plan to avoid problems that may arise following your passing.
1. Estate Plans Are More Reasonably Priced Than Ever Before
Whether or not you consult with a lawyer in person, drafting an estate plan is more reasonably priced than ever before. While consulting with a lawyer is advised, as everyone’s legal situation is different, no matter what your choice, you will find that estate plans are so reasonably priced, there’s really not much of an argument for avoiding getting one. Protecting your assets is a very important consideration that carries a lot of value, yet the process may be cheaper than you might think. Regardless, as mentioned previously, considerations made in an estate plan may provide for certain tax exemptions that may protect your assets in the event of your passing beyond the cost of drafting the estate plan itself.
While these are some great considerations to make in drafting an estate plan, there are many more reasons that drafting one is important to protect your assets as well as your beneficiaries. A good start is hiring a professional attorney to review your unique situation in order to determine how an estate plan may benefit you and those you leave behind.
For questions, or to schedule a consultation, contact Dwight Tompkins today at 714 385 0044. Dwight Tompkins has years of experience in estate planning.
Feel free to give our offices a call today for the peace of mind that you deserve!