27 Jul Three reasons you need a personal estate plan:
Some of the best moments in life are those spent with family. That is why you want to do everything possible to ensure your family’s future is secure. Having a personal estate plan will guarantee that your estate and assets will be handled according to your wishes.
Reasons you need a personal estate plan
Here are three compelling reasons you should consider putting a personal estate plan in place:
- Taxes: Much of the value of your estate could go to taxes rather than to your family if you should die without an estate plan. This depends, of course, on what your estate is worth. Through an estate plan, you can reduce or perhaps completely eliminate any taxes, insuring that your loved ones receive the value from your estate and avoid excessive inheritance taxes.
- Protecting your beneficiaries: You can protect your beneficiaries — your family — with an estate plan, particularly any minor beneficiaries. Through the estate plan, you can appoint a guardian or conservator overseeing the minor’s needs until he becomes of legal age (18 or 21, depending on the state of residence). There is also a way to protect any adult beneficiaries from making bad financial choices by leaving the money in a trust and appointing a trustee to control the assets. You can set up a time-frame for when the trust will end.
- Risk in waiting: If you wait too long to develop an estate plan, your health may be declining or you could become mentally incapacitated. With no plan in place, your loved ones will have to go through the ordeal of deciding who will get what and may also have to go through long and costly probate court proceedings.
Estate planning can be a complex process, but with a carefully and well-executed plan, you can ensure that your intended heirs are the ones who receive your assets.
Barsh & Cohen, P.C. is a boutique law firm that can assist with your estate planning needs. We can help you customize your plan to take care of your children and deal with issues such as gifting and tax liability. Contact us to set up a consultation.