Why Estate Planning Is Important for Everyone
Everyone has an estate, even if it just consists of a vehicle, a piece of jewelry, and a little money in a savings account. It does not matter how small or large an estate is, every adult should make estate planning a priority in their later years. Here is why:
Maintain Control Over Your Possessions
Estate planning will allow you to maintain control over your possessions and what happens to them after you die because it breaks down every single item and dollar and assigns a destiny to each so there is no confusion and no reason (or standing) for an heir or anyone else to fight the distribution of your possessions in court.
Estate planning makes clear exactly what debts should be paid, whether any monies will be put into trusts for heirs, how and when monies and possessions are distributed to each heir, and who will work as the power of attorney and oversee how your estate is distributed when the time comes. Estate planning will also allow you to minimize state, gift, and income taxes that heirs will have to pay upon receiving any assets you leave them.
Reduce the Risk of Family Fighting
Another important reason to make estate planning a priority is to reduce the risk of family fighting once you are gone and your assets are ready to be distributed. Every single asset in your estate will be accounted for and clear direction as to how each asset is handled and distributed will be put in writing, so there is no reason for a family member to feel confused about who gets what and when. If your directions are clear and concise and your estate plan is shared with heirs before your death, everyone will know what to expect and will be more likely to accept the process when the time to distribute your estate comes.
Ensure That Your Assets Will Be Respected
Estate planning will give you some peace of mind in knowing that your assets will be respected and treated as you wish. You have an opportunity to work with your power of attorney before your death to make sure that they understand what your exact wishes are and how they should execute your estate distribution plans when the time comes. And you'll have someone to count on who will make sure that your wishes and plans are implemented exactly as you expect even though you won't be there to oversee everything yourself.
Contact a reputable estate planner today to learn more about how the estate planning process works and to schedule a consultation appointment to get your own plan started.