Why Estate Planning Is So Important
Substantial or modest, everyone has assets. This means everyone has an estate. Estate planning means to create the legal plan to pass along assets to loved ones. Assets can include various types of possessions such as property. If a comprehensive plan is not put into place, many things can happen to your estate that you did not intent to happen or did not want to happen. Estate planning is important because it gives you the power to decide on your future in the event of death or disability. If you are considering estate planning, below is a list of reasons why estate planning is so important for you and your loved ones.
With estate planning, you can create an estate plan that minimizes the taxes your estate will be required to pay. For instance, gifting assets directly to a loved one such as a child, a charity, set up a charitable trust or private foundation, or put it into a trust for a loved one, can all reduce estate taxes because it reduces the value of the estate since the gifted assets can no longer be included in the value of the estate. A financial advisor knows how to set up estates to keep the estate tax from taking a big chunk of your estate.
Keep Assets Safe
No matter how much wealth you have accrued, it is important to protect it. For instance, putting assets into a retirement trust can protect the assets against divorce decrees and lawsuits. Certain offshore trusts are designed to keep assets away from creditors. If you own property, money, and investments, you should have a Will and you should plan what would happen to your assets in the event of your death.
For your Children
With estate planning, you can provide for the distribution of your assets to your children at an age when you believe it is in their best interest. Also, estate planning allows you to speak with loved ones about your selected beneficiaries, which may prevent possible conflict or confusion.
When someone must be admitted into a nursing home or is afflicted an incapacitating condition, issues can emerge from family members about the estate. Estate planning helps to ensure decisions are made as you have instructed. It will also help ensure the person you want is in charge of your estate.
Ensure your Wishes are Fulfilled
With estate planning, you can not only protect your assets from unnecessary taxes and probate, but you will also ensure timely distribution of your estate according to your wishes. You will also have an up-to-date Will and Power of Attorney that fulfills your wishes. In addition, you will be protecting your family in the event of your untimely death. You get to decide on the kind of legacy you will leave. Estate planning gives you the power to choose your beneficiaries and what each will receive.
Hiring a Financial Advisor
Estate planning can be a multifaceted and complex process involving a number of professionals. A financial advisor or estate planner can help you develop an estate planning strategy suited to your needs. You can even plan for your retirement by speaking with an estate planning professional. With proper estate planning, your loved ones will not be left to deal with a lot of questions, legal problems, and paying a lot of taxes.
Creating an estate plan will ensure your assets are passed along with no issues or problems. When you use the services of a financial advisor, you can ensure that your family, assets, and property, are all well taken care of in the event of your incapacitation or death.
This post is brought to you on behalf of http://www.assante.com/advisors/pmoore/, offering estate planning services across Southern Ontario.