Nobody likes to think about what happens after they die. When it comes to planning, we love to devote hours to planning vacations, researching big purchases, or even planning your commute to work. But nobody devotes that time to planning their estate.
You’ve worked hard for everything in your life, regardless of your age and your wealth. Shouldn’t you care about who all your possessions go to when you’re gone?
If you want to learn about the importance of planning your estate, you’re at the right place. Read on.
Choosing Your Beneficiaries
The most common part of estate planning is drafting a will. It’s important to designate where your possessions and wealth will go when you’re gone.
Whether it’s something as big as a massive stock portfolio or a summer home, or as menial as your used car, I’m sure there are certain people you’d like to have those things. If you don’t decide who gets your possessions when you die, the courts will.
Not only does the court process of dividing up wealth take a long time (years in some cases), but it can also go to the wrong people. How is the court to know that your brother could make good use of your car, but shouldn’t be entrusted with your second home?
Regardless of who you want your money to go to, we’re pretty sure the government isn’t on that list.
Without a proper estate plan, your loved ones are going to be hit with huge estate taxes and inheritance taxes. However, there are plenty of ways around that.
A good estate planner can help you put together a plan that will greatly reduce and in some cases eliminate the tax liability of your estate. The Tax Cuts and Jobs Act of 2017 made it easier to give away money after death and during life without incurring taxes. This includes allowing you to make annual gifts up to a certain amount and pay medical and educational expenses without being taxed.
While most people associate estate planning with your will and what happens after death, estate planning can actually help you when you’re still alive. It’s vitally important to decide who will make decisions for you if you’re incapacitated or unreachable.
Naming a power of attorney to act on your behalf helps make sure that all decisions are made in your best interest. This includes making medical decisions on your behalf, as well as making any decisions about dividing up assets that may have not been covered in your will.
Need More Help Grasping the Importance of Planning Your Estate?
By now you should realize the importance of planning your estate. However, if you’re struggling with the idea of estate planning, we’re here to help.
At The Law Network PC, we not only provide great advice but can also help with the actual estate planning. From asset protection trusts to power of attorney, we’ll help you plan your estate so you can worry about living and not dying.