The Importance of Estate PlanningNov 19, 2014
When it comes to estate planning, it is most important to that you know the essentials. One of the main reasons for a plan is to safeguard your money and assets intended for others. Another reason is so that the taxes are minimal.
While estate planning can be overwhelming there are a few factors to take into consideration. These simple dynamics can make the process a lot easier.
An estate plan is a set of documents comprised of instructions to assist people with issues that may arise after your death. There are many issues that are often never thought of until the problems arise. If there is no estate plan then any issues will be resolve by state law and the courts.
For that reason, a well prepared estate plan will allow parties involved to choose the best for the family. For example; who will take over the property, what charity organizations should have a portion of the assets and who will care for the animals or minor children.
When dealing with the courts or state law, they are indifferent to the family’s needs of a decedent. Generally, the assets will be distributed the way they feel is best. Moreover, never assume that the state will give all the assets to the surviving spouse. Some states have been known to grant only a portion of the assets, the rest goes to goes to the certain other family members.
The best way to avoid any complications in courts is to have a Will to ensure that the estate goes where you wanted.
One of the biggest benefits of an estate plan is to define the guardian. This is extremely important if there are minor children that need to be taken care of. If there is no guardian named then the court appoints someone to take care of the children. Sometimes a child may even be awarded to the state. A Will permits an individual or couple with children to make a decision on who will be the guardian instead of the intervention from a judge.
An estate plan will also help with a person last healthcare treatment. It sets up the right to choose how you want to die and what types of health treatment you want before death.
Moreover, a well-designed estate plan includes a document that names the Trustee. The Trustee is the individual or board that acts as the administrator of property in trust. Without the documents there is a big risk of having decisions made that may not be the best for the estate.
Lastly, the importance of estate planning cannot be overemphasized. The estate plan ensures that the benefeciaries receive the estate funds at minimal costs, both financially and emotionally.
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