Estate planning is an essential part of preparing for the future, but it seems like people put more thought into which car they want to buy or where they want to spend their 25th anniversary than who receives all of their assets after they pass away. Sometimes this failure to consider the future is unintentional. When you’re growing a family or building a business, you’re focused more on present needs and decisions. Other times, people assume that they haven’t built up a sufficiently large estate or they simply don’t like imagining a time when they will no longer be in the picture.
The bad news is that when you don’t have a plan in place, there could be a negative and long-lasting impact on your loved ones. The good news is that it’s never too early to start. Below is an overview of 5 critical reasons why you should start building your estate plan today.
- You Protect Your Children
When your children were born, you envisioned a long and happy parenthood that included graduations, weddings, and grandchildren. Dying while they are still young was probably the last thing on your mind, but it can happen. If both parents die before the children turn 18 and neither you nor your spouse has a Will, the courts will step in and appoint a guardian who may not be your first choice. Your children deserve a more secure future, so make an appointment with an estate planning attorney.
- You Protect Your Property from Unintended Beneficiaries
A primary component of estate planning is ensuring that all of your assets, whether it’s an heirloom dining set or a luxury beachfront property, go to beneficiaries that you designate. If you pass away without a plan, the court may decide who gets your property.
A judge doesn’t know your family or business dynamics, so your spendthrift son may receive more money than he can responsibly handle or your partners may unexpectedly find themselves doing business with your spouse. It can get ugly, so start planning now.
- Your Assets Are Protected from Creditors
The right estate plan can protect your assets from creditors, ex-spouses, lawsuits, and court judgments. Being proactive is essential: once you’re served with a summons and complaint, it’s too late to start investigating asset protection strategies. Schedule an appointment with an experienced estate planning law firm to protect your assets during your lifetime and preserve them for your beneficiaries after death.
- You Reduce Your Beneficiaries’ Tax Burden
A well-rounded estate plan can transfer assets in a way that minimizes the tax burden on your beneficiaries. You can reduce much (if not all) of their inheritance taxes and both federal and state estate taxes. There are also ways that you can limit the amount of income tax they might have to pay as a result of their inheritance.
- You Prevent Potential Family Discord
You’ve probably heard plenty of horror stories about the family fights that can erupt when someone dies intestate or becomes incapacitated. An estate plan enables you to decide who receives or controls your money and assets if you pass away or suffer an illness or injury that leaves you mentally incapacitated. Making these arrangements in advance will minimize family discord and ensure that your assets and affairs are handled the way you want.
Contact a Sacramento Estate Planning Attorney
Mortality is a fact of life, and it is important to create a plan that distributes and manages your property in accordance with your wishes. At the Law Offices of Tyler Q. Dahl, we are committed to providing clients to estate planning services of the highest quality, delivered with a personalized approach and attention to your needs. To learn more about what we can do for you, please contact us.
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