The Benefits of Having an Estate Plan
Since death is inevitable, it is only natural to want to control how your hard-earned assets will be distributed or managed after your death or incapacitation. An estate plan gives you this control and a chance to protect your wealth for your family and other beneficiaries. Some of the major benefits of having an estate plan include:
- It helps expedite probate
The court probate process that involves validating a deceased person’s will is usually long and costly. Understandably, it can overwhelm a family that is still mourning a loved one. However, an estate plan can simplify estate distribution by helping your family through probate after your death without confusion and delay.
- It helps reduce estate taxes
An estate plan can also help you and your family reduce or even get rid of estate taxes. Through estate planning techniques like setting up Trusts, a comprehensive estate plan ensures no unnecessary loss of your assets to the state or federal government in the form of taxes.
- It protects your assets and beneficiaries
A comprehensive estate plan can help you secure your assets and protect your family or beneficiaries from lawsuits, bad decisions, creditors, and other uncertain circumstances, including divorce. For instance, an estate plan can help you protect your children and their inheritance by appointing a guardian to care for them if you die or become incapacitated.
Additionally, an estate plan can help preserve your wealth for your family and beneficiaries by protecting it against creditor problems and other law-related liabilities. An estate plan also ensures that an irresponsible heir or beneficiary does not mismanage their inheritance.
By outlining how your affairs should be handled when you die or become incapacitated, an estate plan also helps avoid unnecessary family conflicts, including costly court battles for inheritance. Essentially, an estate plan helps keep the family together even after your death.
