What Estate Planning Is and Why It Matters.
Estate planning is something that everyone should do. Estate planning is the process of making decisions about what happens to your property, investments, and debts after you die or become disabled.
Too many people think estate planning only applies if they are wealthy. But the truth is that anyone who owns property, has investments, or has debts needs to plan for what will happen when they die or become disabled. It doesn’t matter how much money you have; it matters how much control you want to have over your life’s legacy before you die.
Here are some reasons why estate planning matters for everyone.
Why does it matter?
Estate planning matters for everyone because it’s important to have a say in what happens to your property, investments, and debts when you die or become disabled.
If you don’t plan for this possibility, the government will decide who gets your property and how they get it. That means any relatives you would have wanted to give your possessions to, or anyone else might not get them at all. Estate planning is a way of making sure that your wishes are followed after you pass away.
If you don’t want a stranger deciding what happens with your property and investments, then estate planning is something that needs to be done sooner rather than later.
Who needs to create an estate plan?
If you have any investments, property, or debt, you need an estate plan. Estates can be simple and straightforward for someone with a family home and a bank account, or they can be complex for a person with a large business and substantial assets.
An estate plan is a process that involves making decisions about what will happen to your property, investments, and debts after you die or become disabled. It doesn’t matter how much money you have; it matters how much control you want to have over your life’s legacy before you die.
Estate planning for families
Estate planning is important for families because, without it, they may not be able to take care of any property or debts.
For example, say a father dies and leaves his son with a house that he took out a loan on. The son didn’t know about the loan and doesn’t have the funds to pay off the debt. If he didn’t plan for what would happen in this situation, the bank could foreclose on his home and sell it to satisfy the debt.
If you want your children or other family members to inherit something valuable, you need to include them in your estate plan. Then they can keep their inheritance.
Estate planning for individuals
Estate planning is an important process for all people, regardless of their financial situation.
1) You can avoid probate. One of the most common reasons that individuals establish a will or a trust is to avoid going through probate court after they die. Probate is a complicated and time-consuming process, and it’s designed to ensure that an individual’s property goes to his or her heirs as they specify. In some states, you have to go through probate if your estate is worth more than $150,000. But in others, you have to go through probate no matter what your estate’s value is.
2) You can decide who gets your property after you die. Another common reason that people establish a will or a trust is because they want to decide who gets their property after they die instead of leaving it up to the state. If you don’t appoint an executor in your will, then your state decides how your property will be divided up among your heirs. This means that if you don’t want certain people inheriting from you after you die, then you need to appoint someone else as executor or make sure those people are not within the list of heirs you provide in the document.
Estate Planning Is for Everyone
It is not just for retirees, although people do tend to think about it more as they get older. Unfortunately, we cannot successfully predict how long we will live, and illness and accidents happen to people of all ages.
Estate planning is not just for the wealthy either, although people who have accumulated wealth may think more about how to preserve it. Good estate planning is often more impactful for families with modest assets because the loss of time and funds because of poor estate planning is more detrimental.
Estate planning is the process of preparing for the distribution of your property after you die. The estate can include everything from bank accounts, to stocks, to real estate. The process of estate planning includes making decisions about how your property will be distributed after you die.
There are many factors to consider when creating an estate plan. The first decision you need to make is who should take care of your affairs if you were to pass away unexpectedly. You then need to identify your beneficiaries or heirs. You’ll also want to decide who would be responsible for paying the taxes on any wealth that was left over after inheritance taxes. Finally, you need to think about how you would like any charitable donations made after your death be distributed.
If you are unsure about the process or how it works, it’s important to speak with an expert for help. Your lawyer, financial planner, or accountant can all help make the process go more smoothly and help you avoid any mistakes.
“Lee & Evans P.A. Law Offices provides personalized legal services in the areas of wills, trusts, probate, and trust administration. Our team of professionals are dedicated to guiding clients through the complexities of estate planning so that their assets pass to the next generation in a tax-efficient manner.”