For a variety of reasons, many people are under the impression that they don’t need an estate plan. This couldn’t be further from the truth. Estate planning is for everyone. Without an estate plan in place, settling your affairs after you’re gone could have a long-lasting and costly impact on your loved ones. In this article, we examine the top four reasons that estate planning is necessary.
Estate Planning Protects Your Beneficiaries
The most important reason to have an estate plan is that it allows you to designate heirs for your assets. However, if you don’t have an estate plan in place, the court will make this decision for you. And unfortunately, this process, known as probate, can be lengthy, expensive, and lead to familial disputes.
Estate Planning Protects Your Young Children
If you are the parent of small children, you need an estate plan. With an estate plan, you can dictate what will happen to your children should something happen to you before they become adults.
To ensure that your children are properly cared for should something happen to you and your spouse, an estate plan allows you to name guardians to care for them while they are still minors. If you fail to make this decision via a valid will, the court will make this decision for you.
Estate Planning Reduces Taxes
Estate planning also provides your loved ones with protection from the IRS. A huge benefit of estate planning is that it allows you to transfer assets to your heirs while creating the smallest tax burden possible. In fact, even minimal estate planning can greatly reduce federal taxes, state taxes, and estate taxes. In addition, there are ways available to decrease the income tax that your beneficiaries may have to pay.
Estate Planning Prevents Familial Disputes
Finally, estate planning allows you to stop many fights before they start. By providing guidance on your wishes regarding certain types of future events, such as your incapacitation or passing, you’ll prevent a number of potential familial disputes. In addition, when you decide how to divide your estate, family members are left with little to argue about. Of course, if one of your primary goals is to avoid family infighting, you should consider dividing your assets in a manner that members of your family will deem fair.
Contact an Experienced Florida and New York Estate Planning Attorney
If you would like to begin the estate planning process, you need an experienced Florida and New York estate planning attorney on your side. At the Law Office of Angela Siegel, we provide comprehensive estate planning services to clients in Florida and New York. Attorney Angela Siegel has years of estate planning experience, and she regularly helps clients in Florida and New York navigate the estate planning process. So, if you are ready to begin the estate planning process in Florida or New York, please contact us today to schedule a free initial consultation.