When you hear the term “Estate plan,” what comes to your mind? A plan set aside for just the wealth, right? You may probably think an estate plan is for the likes of Warren Buffet, Jeff Bezos, etc. You are very wrong. This plan isn’t restricted to individuals who make 6 figures on a monthly basis. An estate plan is for everyone. Those who make few dollars monthly and those who make millions of dollars monthly.
Before you choose not to plan your estate (probably because you feel it’s less important) you need to know why you need to plan your estate first. Below are some reasons why you need an estate plan:
- To make plans regarding your needs
Most people believe that an estate plan is made for after-death purposes. This isn’t true. In the event of you becoming incapacitated, an estate plan can safeguard your assets. An estate plan can also help you select a guardian who will cater for your needs when you are unable to do so.
If you fail to create an estate plan and you become incapacitated, the government will be the one to select a guardian for you. I guess you wouldn’t want this to happen.
- To transfer your wealth according to your wish
The dead leave their assets behind. When you kick the bucket, you will also do the same. With an estate plan, you can state how your assets to be managed and distributed. If you want your children to inherit your house, cars, investments, etc., you will need to make this known in your estate plan. Without an estate plan, the government will step in. They will have no choice but to distribute all you have worked for. This will be done based on the intestate laws of your state.
- To reduce transfer taxes
If your family were to be as rich as the Bill Gates family, you should expect to pay lots of cash as transfer tax. This tax is paid on transferred wealth. Imagine paying millions of dollars as transfer taxes? Scary right? Thanks to estate planning, you wouldn’t have to pay much as transfer tax. With this plan, you can create a wealth transfer strategy that would help minimize transfer taxes.
- To escape the probate process
The probate process can suck up a huge chunk of your estate. It is very costly, stressful, and it takes lots of time. Attorney fees, court fees, administrative fees associated with the pronate process can end up reducing the inheritance of your estate beneficiaries.
Creating a trust is the best way to avoid probate. Assets in a trust aren’t subject to probate. So your beneficiaries wouldn’t have to pay unnecessary fees if you create a good estate plan. Also, with a good estate plan (one that includes a trust) transfer of assets is done with ease.
Why do you need and Estate Planning Attorney
Estate planning can be quite complex. This plan can determine the future of your children, spouse and those you care about. For this primary reason, it is important you ensure that you create a quality estate plan. An estate plan that can cater for your family and those you care about when you are no more. Creating such an estate plan is not easy, truth be told. If you aren’t an experienced attorney you’ll find it very difficult to create such estate plan.
Would you like to gamble with the destiny of your children by creating an estate plan yourself? Are you confident of creating an error-free estate plan? One that conforms to the laws of your state? Can you create an estate plan that is in line with your wishes regarding your estate? Tasks like this are left for the professionals. You need the help of a component estate planning attorney if you want the best estate plan. These professionals are experienced. They know the system like the back of their hands. They are also current with the estate laws of your state. What more can you ask for?
As one of the best Law Firms in New York, we boast of some of the best Attorneys in the State. Contact us, let’s help you plan your estate!