Posted on: 9 January 2017
Often a person will put off planning for their death, and there are many reasons for this. But estate planning is not about you; it is about your loved ones. With the proper planning, there are many financial problems that can be avoided after your death. The following are four of them.
Your assets will not go to the wrong people
Without a will, it is the courts that will decide which people will receive your assets, as well as how much they will receive. This process is done through a probate court, and a judge may not disperse your assets the way you would like it done. If you have a will, this can be avoided. However, a will can be contested, and this can cost your heirs part of their inheritance. A professionally drafted will, filed with the courts at the time of your death by your executor, is difficult to contest.
You will avoid the expense and time-consuming process of probate court
Proper estate planning can minimize the expense of the probate process. There are less likely to be large legal fees involved, which takes away a part of the assets you wanted your loved ones to have. In addition, without a will, the probate process can last a great deal of time, thus delaying the inheritance you meant for your loved ones to have right away.
You may be able to avoid a probate court
It is possible to avoid probate altogether by using a living trust. This aspect of estate planning allows you to transfer your assets while you are still living. At the time of your death, a trustee can make the transfer of assets to those who are already named in the trust.
You can avoid paying high taxes
Paying taxes at the time of your death is likely to happen; it is only a matter of how much. Naturally, the lower the amount of money paid, the more money your heirs will receive. But the only way to achieve this is proper estate planning. A living trust, for example, can offer tax advantages, but there are many possibilities.
You have worked hard for the wealth that you have built up, and you owe it to yourself and your loved ones to take the time and plan for the dispersion of your assets at the time of your death. Estate planning is not funeral planning. It is simply a part of your personal finances, and your family and other loved ones will be better off for your foresight. Contact a law firm like Linn Schisel & DeMarco Attorneys At Law for more information on estate planning.Share