Having an estate plan is something that more and more people are seeing the importance of. This is backed by the fact that now, younger adults are 63% more likely to have an estate plan than they were before the pandemic. At the same time, adults of middle and older age are less likely to have a will now than they were a year ago. Read on to see some solid reasons why you need to plan your estate sooner rather than later, regardless of the state of your health.
You’ll Prevent Family Squabbles
It’s important for you to understand that where money’s involved, a dark side of people may be brought to the surface. This may come up in the form of one family member feeling that they should be in charge of the finances or something else. Whatever the case, it can cost your beneficiaries a lot of money as they try to get what each believes to be their fair share. When you have an estate plan, you’ll stop these issues way before they even start. This is because you’ll assign everyone their fair share. You’ll also ensure that there’s someone in charge of your estate in case something happens to leave you incapacitated.
You Secure Your Loved One’s Future
An estate plan is the best thing that you can have if you want to make sure that your loved ones enjoy a bright future. If you have small children, you need to make sure that they won’t suffer when you’re no longer around to keep them safe. By naming guardians for your children, you can make sure that your children will be raised by a person whom you trust and in a way that you approve of. Without a guardian, the courts are the ones that make the decision as to who will raise your children. It’s recommended that, barring major events in life such as moving states, getting married, or getting divorced, you should update your estate plan once every five years. This is going to make sure that your beneficiaries are safe at all times.
You Stand to Save Time and Money
Depending on the state in which you live, there will be a different outcome as far as what happens to your estate if you pass on without a will. A representative will be named by a probate court to distribute your assets, a job that will land on your surviving spouse in a majority of cases. A public trustee is named in the event that you don’t have a surviving spouse, and throughout this time, your assets will be frozen. These processes are all paid for out of your estate, a cost that may end up being considerably expensive. This is a sign that if you don’t have a will and you’re under 40 years old, this is the time for you to write one.
You Could Avoid Paying Hefty Taxes
Finally, federal estate taxes can be quite high, and you have to pay these off if you don’t have an estate plan. On the other hand, assets that are passed on in the form of inheritance are lower than federal estate taxes. Some of the ways in which you can ensure that your property gets passed on to your heirs without the federal government or state taking a chunk out of it are establishing joint accounts, making irrevocable gifts, and setting up trusts. These are all made possible by having an estate plan in place, so take the time to prepare one as soon as possible.
It’s clear from these benefits of having an estate plan that you need to prioritize doing so. Even if you’re in good health, accidents happen and you don’t want to leave your loved ones in distress. Save them from the eventuality of having to battle the courts trying to get what’s rightfully theirs in the first place.