We all know that life is uncertain. We never know when our time will come. That’s why it’s important to have an estate plan in place. An estate plan ensures that your loved ones are taken care of after you’re gone. If you don’t have an estate plan, your loved ones may have to undergo the difficult process of probate. Probate can be time-consuming and expensive, so it’s best to avoid it by creating a valid estate plan. This article presents more reasons why you should create an estate plan.
Your Assets Will Be Distributed According to Your Wishes
When you pass away, you will leave behind many things: your home, your savings, and your possessions. While it may be difficult to think about what will happen to your belongings after you die, it is important to create an estate plan to ensure that your assets are distributed in accordance with your wishes. Without a plan, your assets may not be distributed according to your intentions. An estate plan allows you to designate who will receive your assets and how much they will receive.
Set Up a Trust Fund
A trust is a legal entity that holds your assets and distributes them to your beneficiaries according to your instructions. This can be an effective way to ensure that your loved ones are taken care of after you’re gone. There are many different types of trusts, so it’s important to work with an experienced attorney to choose the right one for your needs. With a well-crafted estate plan, you can rest assured that your assets will be distributed according to your wishes, regardless of what happens in the future.
Be careful not to simply rely on a Will! Many make the mistake of relying solely on a Will to take care of their estate and find out too late that a Will basically guarantees probate! A Trust is required to avoid probate. A Will used with a Trust, along with all ancillary documents make a formidable estate plan.
You Can Protect Your Assets
If you pass away without an estate plan or will, your assets will be distributed according to the intestate succession laws of your state. This means that your creditors may have claims to your assets, which could leave your loved ones with little to inherit. An estate plan can help to protect your assets from creditors by creating an offshore trust or asset protection trust. This means that creditors cannot make claims against the assets in the trust. In addition, an estate plan can also help to shield your assets from taxation. By carefully planning how your assets will be distributed, you can minimize the amount of taxes that your heirs will have to pay and provide significant protection for your loved ones.
You Can Choose Your Executor
The executor is the person who will be responsible for carrying out your wishes and ensuring that your will is carried out accordingly. You should choose someone you trust to handle this important responsibility. In addition, you should also provide the executor with a clear roadmap of what needs to be done and how you would like your assets to be distributed to ensure that your estate is handled in the way that you desire.
