Why Estate Planning Is Important For Your Family
Estate planning is crucial as one is unsure of the date of their death. If you had built wealth in your life, it might be time to divide it. That way, you can prevent your money from being tied up in various institutions for years. Estate planning is also significant as it is a way of protecting the people you hold close after your death.
Choosing the Beneficiaries
The decision on who will inherit your property is significant. Estate planning will ensure that your hard-earned fortune does not land in the wrong hands. Building wealth in the course of your life is usually an outstanding achievement. However, most individuals postpone estate planning throughout their life. It is because they have not come to terms with the fact that eventually, they will die. In some situations, people do not want specific individuals to be beneficiaries. A good example is your ex-spouse. That is why estate planning is ideal.
Many have purported that estate planning is only for those who are wealthy, but that is not the case. The size of your valuables does not have to be high for you to plan. Today, the middle class in society is taking part in estate planning. All individuals need to sort out their affairs early enough. Failure to plan your estate accordingly comes at a high cost. If the breadwinner is sick, disabled, or dies, the family might struggle to make ends meet. While life is an uncertain journey, leaving your affairs in order is one way of taking care of your family.
Avoid Legal Issues
Failing to plan for your estate early enough will subject your property to the probate process. The probate process can be brutal since some family members perceive it as biased. An administrator is appointed to distribute the deceased person’s valuables. The distribution is solely based on the personal representative. If the beneficiaries feel that the distribution of wealth is unfair, they will have to go to court. This process will ultimately stretch them financially since hiring lawyers is costly. Further, the process can be hectic and stressful due to the back and forth.
The probate process eliminates your say on who you intend to benefit from your assets. Suppose your son needed funds for college; he might not be given the money he needs under probate. Estate planning gives you a structure to distribute your assets fairly. If you leave a house to your loved one, they can sell it quickly. Selling an inherited house in Florida or any location is easy, thanks to estate planning.
Your Future financial Investments Planning.
An estate is substantial for business people with numerous investments. There are those investments that you want to live on after your death. These investments are your legacy. One way of ensuring they are well managed after your death is using an estate plan. You alone are capable of appointing a worthy manager of your financial investments. You could stipulate who you intend this to be in your estate plan.
Moreover, if your health is deteriorating, you can create attorney powers. That way, should your condition worsen, an individual will be appointed to run your accounts. Also, the individual can make crucial decisions for you when you cannot. As you grow older, your health deteriorates. An estate plan gives room to plan for various healthcare options that you might need. Estate plans have been known to provide a healthcare attorney power option. Further, it helps access legal document known as healthcare proxy, a legal document that gives the right to a trustworthy person to decide on your behalf on matters of health.
Arrange Guardianship for Your Children
Parents always want to ensure that the children are taken care of after their death. That is why estate planning is crucial, especially if you have kids who are not adults. Writing a will ensures their future is secure. If you do not have a spouse, the children enter the foster system. The foster system has helped many orphans. However, some kids have suffered brutally in this system. You can outline who you would prefer to care for your children in your estate plan.
Closing Thoughts
Death is one of the unavoidable events in an individual’s life. Death is ultimately inevitable for humankind, and that is why you should prepare for it. It is significant to put your affairs in order by making peace with all persons in your life. This will contribute to your peace and happiness.
