People appear to spend more time planning a vacation, buying a car, or even picking a restaurant for supper than they do decide who will inherit their assets once they pass away, according to research. In the absence of an estate plan, you will be unable to determine who will benefit from your hard-earned goods, whether it is a vacation or a supper out.
Everyone, not just the wealthy, should undertake estate planning. You may not have a large house, an extensive retirement account, or valuable artwork to leave behind, but failing to prepare for your death could have a long-lasting and costly impact on your loved ones.
Having an estate plan safeguards the interests of your loved ones.
If estate planning was originally thought of as necessary for only the wealthiest people, that’s no longer the case. Many middle-class families nowadays must prepare for the possibility that the family’s primary income provider will pass away (or breadwinners). You don’t need to be a millionaire to make money in the stock market or in real estate, two assets that you’ll want to leave to your children and grandchildren. Estate planning is all about naming heirs for your assets.
An estate plan safeguards the welfare of children under the age of 18.
If you have small children, you need to be prepared for the unthinkable to keep them safe which means name guardians for your children so that they will be cared for according to your wishes. Without a will naming these guardians, the courts will have to step in and decide who will raise your kids.
Planned estates help to avoid taxation.
Another important part of estate planning is minimizing the tax burden on your heirs. One way to minimize or eliminate state inheritance taxes is to use estate planning. You can reduce the tax burden on your loved ones by using a combination of trusts, tactical accounts, and more.
An estate plan helps to keep the family out of trouble.
Often, family feuds are caused by a lack of estate planning. Due to a lack of a will or estate plan, families are often pushed against one another and must go to court to resolve their differences. If you are married to more than one person or have children from one household, creating an estate plan is an absolute must. You’d be doing yourself and your loved ones a favor if you made some estate plan.
Various estate planning lawyers in New Jersey make it simple to leave your possessions to the people you care about when you die. A well-thought-out estate plan can serve as a safeguard for both your possessions and your loved ones in the event of your death. With no plan in place, the courts may decide how your assets are divided or who gets to raise your children, resulting in tax consequences for your heirs.