You may think of an estate plan as something that only very wealthy people with large estates and many assets need. But the truth is that an estate plan is an important way to protect your family's future, regardless of your current financial situation. Here are five reasons you really do need an estate plan:
You Have Children Under Age 18
Having minor children is one of the biggest reasons to create an estate plan. An estate plan will help legally determine who will become guardians of your children should you die or become incapacitated. In addition, an estate plan will protect any financial resources you leave for your children, as well as put a financial plan in writing for paying for their future college expenses.
Loss of Mental or Physical Capacity
An estate plan doesn't simply cover what happens if you die. It also protects you and your family in cases where you are severely incapacitated and need someone else to manage your finances and make legal decisions on your behalf. A thorough estate plan will typically include a power of attorney, allowing someone you trust to make important medical, legal, and financial decisions for you when you are unable to do so.
Avoiding Probate
Without an estate plan, your assets and debts may be tied up for months or years in probate court. This will not only add unneeded stress to your loved ones' lives, but also potentially cost them a great deal of money in court fees. With an estate plan, probate can usually be avoided since there is nothing for the probate court to decide- you and your estate attorney have already decided everything.
Lower Taxes for Your Beneficiaries
By using an estate plan to create a trust for your beneficiaries, you can help them avoid hefty inheritance taxes and other financial penalties. Without an estate plan, a large percentage of any money you leave behind may be devoured by taxes.
Avoid Family Feuds
Even close-knit families can quickly turn unpleasant when estates and inheritances are concerned. In order to avoid family disagreements about which assets go to whom, and other legal and financial details, it's best to have a legally binding estate plan that clearly spells everything out. This will make things less personal and more logical for all involved.
In order to best protect your family by creating an estate plan, it's always a good idea to schedule a consultation meeting with an estate attorney.
Check out the site here for more information about what an estate planning attorney can do for you.
Share9 November 2015
Were you injured at work and fighting to get the workers compensation that you have paid into each year? Sometimes, getting those payments can be very difficult. What do you do when an employer fights the claim? Do you need a lawyer to help you through the process? How will you pay for a lawyer if you cannot even pay your electric bill? You are probably as lost as I was when I went through the process. Fortunately, you can learn from my experience with the system and find the answers to many of the questions that you have about filing a workers comp claim and fighting the system when it is denied.
