Estate planning is something everyone should do, regardless of income level. While it's something many like to avoid, it's important to have a plan in place to determine who will receive your assets after you die. The following list shows the reasons to consider estate planning:
Ensures Your Assets Are Handled as Intended
Having an estate plan prevents possible family fights over how much money each heir gets. You'll be able to choose the person to handle the finances ahead of time.
If you have assets to pass down, you'll want to make sure to name heirs. You need to decide who receives what, whether it's your stock portfolio, your jewelry, or your home. If you don't make the decision, the courts will do it instead, which can take years.
If you have young children, having an estate plan allows you to name guardians for your children if their parents die before the children turn 18 years old. If there is no plan, the courts decide who gets custody.
Keeps Heirs from Overpaying Taxes
Estate plans transfer assets to heirs with the smallest amount of taxes. Without an estate plan, heirs could take a huge financial hit from federal and state taxes.An estate plan ensures that your assets are passed on to the people you designate to receive them. Without a plan, the courts will make decisions about who receives fund or who watches your children. For more about the importance of estate planning, call Reed Law at 850-250-4260.