If you're planning on passing down your assets to your loved ones after you've passed away, estate planning is an absolute necessity. Those who don't officially plan their estates leave their assets subject to the laws of their respective states, which may or may not give you a result you want.
There are many benefits of estate planning. Here are 5 of them.
Pass the Maximum Amount of Assets Down to Your Loved Ones
There are a variety of fees and taxes associated with an estate. Regardless of whether or not you engage in estate planning, your estate will have to pay some of these fees and taxes.
But if you proactively engage in estate planning, you will be able to substantially reduce the costs of these fees and taxes, and perhaps eliminate some of them. This means that you'll be able to pass more of your estate's assets down to your loved ones, and your estate will pay less of it to the government.
Have Your Estate Distributed Quickly
Another benefit of estate planning is that the assets of your estate will be passed down to your loved ones in a timely manner. Estates which are not officially planned typically undergo a lengthy clearance period, meaning that the beneficiaries of the estate will not receive the assets immediately.
Your estate's assets can be of great help to your loved ones when they're trying to plan a funeral, make burial arrangements, and pay other miscellaneous costs. You'll want them to have access to your money so that they can comfortably afford all of these costs without using their own assets or borrowing.
Specify Your End-of-Life Wishes
Estate planning is not only beneficial for dictating where your assets will go after you've passed away, it's also beneficial for determining what decisions will be made toward the end of your life. For instance, if you wish to not be placed on life support, you can dictate these specific instructions in your living will or power of attorney for health care.
You will essentially be able to consent or not consent to something before it happens. If you don't plan your estate in this manner and you become incapacitated in some way, you will not be able to make any decisions about your end-of-life care, and neither will your family members, without going to guardianship or conservatorship court.
Give Money to Charity
Do you regularly give money to a specific charity? If so, you can give money to that charity after you've passed away by dictating it in your will.
You can either dictate to have a large sum of money given to a charity at one time, or you can have that money distributed slowly over the years after you've died. Either way, you'll be able to continue to support a cause which you were passionate about during your lifetime.
If you don't plan your estate, you will not be able to do this. Instead, all of your assets will be passed down to blood relatives.
Keep Your Interests in Order After You're Gone
When you don't plan your estate, you leave your assets subject to the rules and regulations of the state in which you live. This means that your assets will not necessarily be passed down to the people or organizations that you would otherwise choose as beneficiaries. Your specific wishes won't be granted because they haven't been spelled out in a legal document.
By engaging in proactive estate planning, you can ensure that all of your assets are going to the specific beneficiaries you choose. Your loved ones will receive the appropriate inheritance, and your business partners will receive the appropriate ownership, free of unwanted interference by strangers to the business.
Start Estate Planning with John J. Pembroke & Associates
The benefits of estate planning are clear. The lawyers here at John J. Pembroke & Associates are the experts to see to start the estate planning process.
Our firm is well-versed in the process of estate planning, and we will ensure that your assets are passed down to your loved ones in an orderly and timely manner.
Contact us today to schedule an appointment!