There are a variety of important reasons to have an estate plan. Estate planners should understand why an estate plan is needed and how they can develop an estate plan that protects the estate planner and expresses their wishes.
Avoid the probate process
One reason to have an estate plan is so that the estate planner can avoid the probate process. The probate process includes validating the estate planner’s will, valuing their assets, paying outstanding debts and taxes of the estate and distributing what is left over to beneficiaries.
Protect assets and reduce estate taxes
Estate planning can help protect both the estate planner’s beneficiaries and can also help protect the estate planner’s assets. For that reason, trained estate planning guidance can be helpful to help with estate planning complexities.
A variety of different taxes typically need to be paid by the estate. By utilizing estate planning tools such as trusts, it may be possible to curtail or even eliminate the amount of taxes that are due.
Prevent difficulties for families
When an estate planner does not have an estate plan, it can create a messy situation for surviving family members during what will already likely be an emotionally difficult time. To help relieve stress on family members if the estate planner becomes incapacitated, as an example, estate planners should have a thorough estate plan that addresses their wishes.
Estate planning is useful in many situations and circumstances. Estate planners should understand when and how estate planning tools can help them when they are setting up their estate plan.