Contrary to popular belief, estate planning is not just about money or taxes. Far from it. Today, it’s more about protecting your assets for yourself and your loved ones, achieving your financial goals, and safeguarding your health care.
Money and taxes aside, here are 7 good reasons why you need an estate plan…
- Your Health care. Defining how your medical needs will be addressed in case you cannot make health care decisions for yourself is a primary objective of an estate plan. It’s important to name someone to make decisions for you and tell them how you want them made. This must be legally documented or the person you want caring for you, cannot. This issue is not just for your personal well-being, but for the well-being of your loved ones who are not prepared to make decisions on your behalf without your guidance.
- Probate. Dying without a Will will likely involve a lengthy, public and often expensive court process that takes control out of your family’s hands and puts it in the hands of a judge who must follow Texas statutes. A judge who doesn’t know you or what’s important to you. A main focus of estate planning is to get your property into the hands of those you want it to go to. Instead of having to deal with an unnecessarily lengthy court administration, an estate plan will give your family peace of mind when they are emotionally processing your departure.
- Family feuds. Family fights over how assets are divided and distributed are common when there is no estate plan and/or trusted advisor to guide family members. Sadly enough, these fights happen even when amounts of money are small or when there is no money at stake. Some of the biggest fights we’ve seen happen are in storage units over sentimental items with no monetary value. If you don’t want your family to fight, plan your estate.
- Beneficiary forms. You likely have assets that cannot be passed along in a will alone. These include IRAs, life insurance, retirement plans and annuities, all of which are governed by beneficiary forms that specify who is to receive the assets upon the death of an account holder. Completing these forms properly is essential when it comes to your estate plan.
- Kids and parents. If you are currently responsible for the care of minor children, elderly parents or a person who has special needs you, MUST plan for the continuation of that care after you are gone. Also keep in mind that minor children are unfortunately another issue family tends to end up fighting over both in and out court.
- Managing assets. Is your spouse or other family member capable of managing all of your assets? If not, it is necessary to name someone who is capable of doing this now so that in the future, your assets will be managed wisely for the benefit of your family and your beneficiaries.
- Business succession. If you own a business, a succession plan will govern what happens to your ownership shares or business interests if something should happen to you. This is particularly important if you are the primary financial provider in your household.
Have questions? Ask away!
You must be logged in to post a comment.