More often than not people tend to spend more time deciding what car to buy or planning where to go on vacation, than they spend estate planning. Obviously, estate planning is not near as fun to think about as buying a new car or going on an exciting trip, however, if you do not estate plan, you cannot decide who gets everything for which you have worked hard throughout your life. Another common belief is that estate planning is only for the rich, however, that is far from the truth. Even if you don’t have a large house or bank account, if you do not have an estate plan in place, your loved ones could be affected. Estate planning can be overwhelming. If you are unsure where to start, you should consider working with an experienced estate planning can guide you through the full process and help you ensure your loved ones are taken care of after you’ve passed away.
Estate Planning Ensures Your Wealth Goes to Proper Beneficiaries
One of the main aspects of estate planning is deciding heirs for your assets. Your assets could include stock options or a summer home. If you do not have an estate plan, the court will then decide who should receive your possessions. When the courts get involved, it can tend to take multiple years and it can cause unneeded stress to your loved ones. For instance, the courts do not know the personalities of your loved ones so they may provide a sibling who is irresponsible with money to receive a large sum of your funds. The courts also do not automatically give your surviving spouse all of your assets.
Estate Planning Protects Families with Children
An unfortunate part of estate planning is that you are forced to consider and plan for circumstances of when you die. No one wants to think they are going to die young, however, if you have small children, you will need to appropriately prepare if something should happen. To ensure your children are taken care of if you should die, you will need to create a will and list their guardians in case both of their parents die prior to the children becoming 18. If you do not have a will listing their guardians, the courts would then step in and decide who will be raising your children.
Estate Planning Prevents Family Feuds over your Belongings
Estate planning is necessary to help decide who will control your assets and finances when you die or if you should become incapacitated. Creating a will that lists out exactly what you would like to happen to your possessions should help ensure your assets are taken care of in exactly the way you would like.