Importance of Estate Planning – You’ve worked hard throughout your life to build the house of your dreams. Or, you’ve gone the extra mile to invest in real estate to build assets that would help you and your kids in the future!
As humans, we are also aware that we’re not getting any younger, so it’s essential to plan things accordingly.
We’ve often seen cases of siblings fighting over the assets and money that their parents leave behind. Hence, it is vital to plan your asset and estate distribution accordingly.
What is Estate Planning?
Estate planning is the systematic planning of passing down the investments from one generation to another. Moreover, a person can decide what things get divided in what ratio among the younger generation. These assets include buildings, houses, cars, money, etc.
Importance of Estate Planning
Any dispute among the family regarding the estate can disrupt the peace and harmony in a family. In addition, the estate planning process is entirely different from drafting a will.
Appointing a Person for Decision Making
With estate planning, the decision-maker can give power of attorney to a person of their choice. This appointed person is responsible for making medical or financial decisions on behalf of the person. However, the designated person also divides the money from different assets to the beneficiaries.
Saves Others from Tough Decisions
If a person dies without a will, state laws decide what happens to their assets and make decisions on their behalf. After this, the surviving spouse is appointed as the decision-maker. Furthermore, a state-appointed trustee will decide if no surviving spouse and no family member step up to do the distribution.
However, a person can avoid this situation by opting for an estate planning procedure. It will help you and your family members in saving time and money.
Estate Planning is for Every Person
People believe that making a will or estate planning is just for the rich people. They think preparing a will for a house or flats is not sensible. However, this is what needs to change about our society.
An experienced lawyer working in estate planning can guide you regarding the same. The lawyer can prepare a suitable plan for you depending on our assets, financial affairs, and family understanding.
If you wish to help the beneficiaries save some money on the assets, you can gift them while you are alive instead of passing them on. There is a chance that if the assets are passed on, a high amount of tax would be applicable on the property.
The sooner you start the estate planning process, the easier it will be for you to live the rest of your life. The professionals suggest altering your estate plan with every significant life change and government policy change. That is because it would be problematic for your heirs if the plan is out-of-date.