Estate planning is the process of anticipating and arranging for the management and disposal of a person’s estate during the person’s life in preparation for a person’s future incapacity or death.
Who needs an ESTATE PLAN? EVERYONE!
Most people would assume that only rich people and people with actual estate need an estate plan. So, what can you call an estate? An estate simply consists of your possessions, like your car, home, life insurance or anything you have that is valuable to you.
This means everyone has an estate and something in common—you cannot take it with you when you die.
THE BIG QUESTION: What WILL HAPPEN to your estate?
Things do happen unexpectedly. When you’re no longer around or become incapacitated, what would happen to your estate? What would happen to all those things that you treasure and everything you worked hard for? Where would it go?
Without an estate plan in place, your estate will go through probate which means that your estate will be at the hands of the court. They will appoint someone as a personal representative to oversee distribution of your assets. That someone might not be who you wanted to take control of your estate, and your estate could be passed to people who you do not want to inherit your assets.
The answer: ESTATE PLANNING
Estate planning covers everything from protecting your assets to carrying out your wishes should you pass. It serves as a safeguard for all your assets, making sure that it is distributed the way you choose. It also helps reduce the taxes and expenses of an estate, as well as simplify and speed up the transition of assets to ensure your beneficiaries are protected.
Still not convinced that you need an ESTATE PLAN? Consider these top 3 reasons why you should have one.
Reason #1: Avoids probate
When you die without a will, your assets will be frozen until the court combs through all of your estate. This process is called PROBATE, it is a costly and stressful process for your family to go through.
Having a comprehensive estate plan in place could save you and your family out of court and out of this stressful process. When you put your assets in trust, is that after your death, your assets are not part of your probate estate. Your trustee will have full control of your assets, after your death the trustee can easily and quickly transfer your assets to the family you left it to, without probate.
Reason #2: Minimize taxes for beneficiaries
By law, your beneficiaries must pay a considerable amount in taxes before they can receive their inheritance. Through estate planning, federal and state estate taxes and state inheritance taxes cost can be reduced.
Estate planning is all about protecting your loved ones, which means in part giving them protection from the Internal Revenue Service (IRS).
Reason #3: Ensures your wishes are met
Estate planning isn’t just a plan for when you die.
Estate planning also include a durable power of attorney, healthcare proxy and living will – three important legal documents while you are alive that ensure your wishes will be carried out should you become incapacitated and unable to make decisions.
Estate plan serves as your safety net for everything you’ve worked hard for and what you value the most. It protects not just you, but all the people you love.
The post The Importance of Estate Planning appeared first on Law Offices of Christina Sammartino PLLC.
Importance of Estate planning
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