Estate planning is as much for the middle class, as it is for the rich because most of us belonging to the middle class take well-thought-out investment decisions, and handle the savings cautiously to build our estate brick by brick. Therefore, we are entitled to how our estate will be distributed among our loved ones once we bid farewell to this mortal world.
In these circumstances, a carefully crafted estate plan comes into play. Amid the coronavirus pandemic, there are some additional financial and estate planning matters that must be considered.
To Avoid Rebate:
Rebate is a process in which the will of the deceased is validated, all the assets are valued, all the bills and debts are paid, and the rest is distributed among the beneficiaries. But, it can prove to be an incredibly expensive and tedious process, as it can take more than a couple of years to complete. Therefore, hiring an estate planning lawyer to chalk out an estate plan in your life can save your loved ones from going through the exhaustive process of rebate. It must be a strong enough motivation for you to create a comprehensive estate plan while you still belong to this world.
To Protect Beneficiaries:
Estate plans are created to protect beneficiaries for two reasons; one is to protect minor beneficiaries from any unforeseen circumstances, and the second is to protect adult beneficiaries from outside influence and wrong decisions. If the beneficiary is a minor, you cannot hand over a chunk of your estate to him. Instead, you must appoint a guardian to oversee the needs and finances of the minor until he reaches a certain age. If you fail to do that, you will be inviting family discord and a lot of legal expenses after you pass away.
Similarly, an estate plan can also be created to protect an adult beneficiary, who is incapable of managing money, or has a spouse that can devour the beneficiary’s inheritance, or take a part of it in divorce.
To Protect Assets:
Many people are now hiring estate planning lawyers to create a comprehensive estate plan to protect their assets. The key is to make a sound financial and estate plan, that can both protect your assets, as well as your loved ones from any sort of legal attack. You can also protect your spouse by setting up ABC trusts or AB trusts as they can prove to be really handy in tough times.
To Reduce Estate Taxes:
Another motivator of creating an estate plan is to reduce payments made to the state in the name of federal estate taxes or state inheritances taxes. Otherwise, these payments have the potential to put a considerable dent in one’s estate. Married couples can plan meticulously to eliminate estate taxes by setting up ABC or AB trusts, and they can also use advanced estate planning techniques to minimize the impact of the inheritance tax bill.
To Protect Yourself In Case Of Disability:
Nowadays, a considerable number of people experience some sort of disability before they die. Being proactive with an estate plan can really help you in such situations because the plan will allow you to decide how this scenario will be played out. Otherwise, your estate may be appointed to a legal guardian who will mishandle your valuable assets and will not act in your best interest.
Therefore, if you have an estate that may include a car, a house, furniture, savings account, and life insurance, the first thing you must ask yourself is who are the best estate planning lawyers near me. We have discussed here five major reasons why you need an estate plan so that you stop procrastinating and start taking it seriously.
Moreover, it is also important to know the difference between two interchangeable processes – Will planning & Estate Planning. Many people confuse one with the other, but indeed, they are way different from each other. Both are directed to instruct your relatives about the handling of your assets or property after your demise. But, in the case of estate planning, it also works more on your wishes concerned with your health, finance and other important events while you are alive. A state planning lawyer is certain about your wishes and knows what kind of planning you are looking for, and helps you in it. It follows up your bestowed plan and distributes your property as per your will.