Many people feel that estate planning is only for the one-percenters, but that is not the case. While the wealthy do benefit from creating in-depth plans, the middle class, and even low-income people can benefit from a well-organized estate, and an estate lawyer, like from Yee Law Group, can help. Whether you have many assets or only a few, there are at least five reasons you need an estate plan.
1. Protect Your Assets
Lawsuits, debt collectors and other parties can put your estate at risk, which is the primary concern for estate planning. Asset protection ensures that your property remains with you throughout your lifetime and then contributes to the lives of your beneficiaries. Early planning is key to asset protection because a court will not allow protection through trust development if a lawsuit is on the horizon.
2. Protect Your Heirs
An estate plan allows you to protect an inheritance for beneficiaries. The primary reasons for enabling such protection depends on the age and circumstances of the beneficiary. A minor requires a guardian or conservator to oversee needs and finances until they turn 18. An adult may need inheritance protection because of irresponsible behaviour or to avoid legal troubles with creditors or divorcing partners.
3. Avoid Infighting and Legal Hassles
The primary aim of creating an estate plan is to limit complications with asset distribution after your death. When you do not plan for such things, then you make the legal process following your death more complicated on those you leave behind. Without a plan in place, your family may turn on each other, and the probate process may be drawn out for years, depending on the size of the estate.
4. Avoid Probate
With a thorough estate plan, you can often avoid the many pitfalls of the probate process. Using trusts and other financial vehicles, you can leave little for courts to settle, which means your family can grieve their loss and receive their inheritance in a shorter time frame.
5. Reduce Tax Responsibilities
Estate or inheritance taxes can significantly diminish available assets, which means that you may not be leaving as much to your loved ones as you thought. An estate plan can help you avoid tax liabilities before your death so that your family gets the inheritance you want them to have. However, to ensure that happens, work with a qualified estate planning attorney.
Estate planning is not only for the wealthy. It is a tool for anyone who wants to protect their assets for their loved ones. Contact an attorney to discuss the benefits of creating a plan early.