4 Important Facts About Estate Planning

But how do we prepare ourselves for unforeseen circumstances? What if we could not afford a funeral plan for ourselves, much more for our family? With the help of experts and professionals, it is now easier to know about different plans that you can prepare to best suit your needs.

In this article, we will introduce you to important topics such as what estate planning is, why it is important, and what the important facts about it that you should know, among others. 

What Is Estate Planning?

Estate planning is the preparation and managing of someone’s assets in the event of his or her incapacitation or death. This process includes the inheritance to heirs and other prior settlements. The most legal way of planning your estate is with the help of an estate lawyer whose expertise is within the estate law.

The idea of estate planning is to make sure that you, including your assets, are protected at your time of death. This process is also associated with a legal binding that can identify the people who can make decisions on your behalf. If you are new to this process, here are four documents that you need to consider before getting started with your estate plan:

1. The Durable Power of Attorney document allows someone, within a legal way and financial capacity, to act on your behalf. This ensures that the document is valid even if you were to be incapacitated.
2. The Health Care Proxy document allows an individual to make medical decisions on your behalf should you become incapacitated. This document must be filled out completely and is witnessed properly, naming the primary proxy and an alternate.
3. The Living Will guides your proxy in outlining whether or not you want life-sustaining treatment for suffering a permanent loss of mental capacity or if your body is failing.
4. A Will is a document that decides what happens to your assets once you pass away. Once the last will and testament are not available, your assets will be distributed according to the state laws rather than according to your wishes. This also allows you to name an executor to distribute your estate. To be valid, the will must be properly executed and witnessed.

Estate planning determines how a person’s assets will be preserved, managed, and appropriately distributed once the need arises. Although this can be a complex task, being well-informed can make a difference for what’s left in your loved ones in the future.

Facts About Estate Planning

Estate planning is not an easy topic. But despite that, it’s one of the most important things you can do before incapacity or death comes along.

To help you understand the core and importance of estate planning, here are four important facts that you should keep in mind as you layout your estate plan:

1. Age is not a factor

Estate planning services are not only for people in their senior years. Anyone of legal age who owns anything of value can start planning how to distribute, manage, and preserve their estates in the event they pass away or become incapacitated. An estate does not only cover expensive houses that most people in their prime age own. It can be anything like a car, bank accounts, or personal possessions that hold a value.

Regardless of your age, having an existing plan while you’re still able and alive will ensure you that no matter what happens tomorrow, your assets will be in good hands.

2. An estate planning attorney is needed

The asset disposal process can be overwhelming, stressful, and emotional. An estate planning attorney guides you throughout the process to make sure that your goals and wishes are properly carried out. 

Estate planning attorneys are also well-versed in legal matters, such as asset management, tax planning, drafting legal documents, and other probate processes that would be useful for incapacity and death.

3. Planning evades probate

Estate planning, along with the help of your probate lawyer, can help you pass down your assets to the rightful heirs without undergoing a court process called “probate.” Probate can be very expensive and lengthy, and it could lead to more inconvenience. 

4. Prevent feud among families

Family conflicts can arise when inheritance is a matter of question. It can cause bad feelings and ruin a relationship, especially when there aren’t any laid out plans. A carefully drafted estate plan can help avoid disagreements that could escalate into estate battles. Because your wishes are already written in your will and testament, families no longer have to quarrel about who gets a share.

These are some of the most important things that you should know about estate planning. Getting familiar with these terms will give you an idea of how important it is 

Why Is Estate Planning Important?

If you want to protect your assets and your beneficiaries ahead of time when you are still able and capable, you need an estate plan. Nowadays, it is necessary to plan ahead of the distribution of your assets to minimise costs and prevent family altercations. 

Here at My Estate Planning Services, we understand your need for accurate and quick answers about estate planning such as probate, funeral plans, revocable trust, and more. That is why we provided some of the reasons why you should be convinced that an estate plan is important.

1. Estate planning protects your beneficiaries.

Part of the estate planning process is designating beneficiaries for your assets. Without an estate plan, the court who will often decide who gets what—another process that can take years and rack up fees. And because the court doesn’t know who among the prospective heirs has been responsible or not, the situation can further heighten family tension.

2. Estate planning protects your underaged children.

If you have young children, you need to prepare for the worst—dying. To ensure that your children are cared for in a manner of which you approve, you need to have a will that declares who will be their guardians if you die before they turn 18, or else the courts will step in to decide who will raise them.

3. Estate planning spares your heirs from high estate taxes.

Even just a bit of estate planning can help you minimise the required federal and state estate taxes and state inheritance taxes. You can reduce the inheritance tax bill that you leave behind by giving away up to £3,000 a year as part of your annual exemption. The support of an estate attorney or financial advisor can also help on how effective your estate planning is going to be.

4. Estate planning prevents family altercations.

Stopping fights before they even start is another reason why an estate plan is necessary. When you plan ahead of the distribution of your assets and create your will and testament, you can decide whether to divide your estate exactly equally or not and prevent other family members from taking matters in court.

The importance of estate planning can be linked to the things you need to prepare for your future. That is why knowing more about it can help you plan wisely and accurately.

Where to Know More About Estate Planning

With your preliminary research and careful planning, the search for estate planning should not have to be stressful or tiresome. A lot of options are available for estate planning these days because of the easy access to information, and it can empower you to make independent choices about your future, and of those who are important to you.

As we have mentioned earlier, it is best to have legal advice when creating your estate plan and a quick quotation process online. To get in touch, you can visit their official website and learn more about how you can prepare for the future.