The importance of having a plan for your estate once you die is vital. Whereas a living will let you make requests and proposals concerning your healthcare and your properties if out are not in a position to, an estate plan will make arrangements about all your affairs and will leave a record of your indentions and wishes for the same, To ensure that your beneficiaries; your loved ones have a smoother experience concerning sharing and taking responsibility for your estate and property is concerned.
In a mission to make the process, the proceedings on the outcome; the estate plan acceptable and water-tight, you need to incorporate the services of your family estate lawyer or an elderly law attorney to help you in making certain that the proceedings are in accordance to the state’s laws.
What benefits arise as a result of having a well-laid estate plan?
Estate planning together with a living will are all important. Highlighted below are some of the main reasons and benefits that people derive from making plans for these estates as well as having a living will.
1. Estate planning will save you and your loved one’s time as well as money.
If one happens to die without making estate plans or a will, their property and estate will be shared following the proceedings of a probate court. The process of probation can take a long time as it will involve a lot of paperwork and lawyer’s appearances. These appearances also prove to be a problem as legal bills increase significantly. By having a well-laid estate plan and a living will, you will be able to avoid the delay and extra costs that the probate proceeds will bring about. This will save a lot of your loved ones’ time and finances.
2. Protection of children and other beneficiaries.
Have you wondered what would happen to your children if you would die one day and leave them without a custodian? If you are without a plan for your estate, the probate courts in your locality will likely have to appoint a guardian for the children. If you would like to have a voice in the decision of who takes care of your children when you are gone, then you need to identify that person you trust to be a guardian in your living will.
3. The value to the estate owner and planner.
An estate plan can include a durable POA and a healthcare proxy. These two documentations are important as they ensure that your wishes are carried out in case you are permanently or temporarily rendered incapable of handling the same. A medical POA will ensure that there is one person who will be responsible for seeing to it that you receive medical care and are taken good for during your incapacitation. Lack of an elaborate estate plan and a living will lead to the involvement of the courts who may appoint someone unfamiliar with your wishes to make medical care decisions on your behalf.
4. Planning for your estate may help avoid huge taxes.
Estate taxes can prove to be challenging for the beneficiaries to settle. During estate planning consultations and proceedings, the estate owner and planner can use some legal means to ensure that the beneficiaries and heirs don’t pay any estate taxes for their estates. Filling up trust deeds, and making irrevocable gifts as well as establishing a joint account may ensure that assets are removed from your estate. This can only be possible if one has made an estate plan.
5. Handing over of businesses.
In case you are a business person, it will be advantageous for you and your business to have an estate plan. By having an estate plan, you can decide who takes over the business and how the distribution, as well as the organization of finances, can be executed. This will give a lot of clarity concerning the future of the business and will also ensure that it is carried on following your general wishes concerning the business.
FAQs.
1. What does estate planning mean?
This is the process of legally safeguarding your assets and ensuring that the assets, as well as your legacy, will only benefit the beneficiaries that you will choose using your criteria.
2. How can estate planning help in taxation?
Having an estate plan can help your beneficiaries in matters of tax liability by ensuring that there’s a reduction in tax liabilities. This will place most of the assets in the hands of your beneficiaries.
3. How beneficial is a will?
The will is a document that will allow the tour to pinpoint a person who will inherit your properties when you are deceased.
4. How can one avoid probate?
Most people will set up trusts. Others will appoint beneficiaries. Since probate laws contrast in each jurisdiction, your elder law attorney will help in informing you about the policies within their legal jurisdiction.