Most individuals today have an estate that typically comprises a car, home, real estate, checking account, mutual fund investments, life insurance, and other personal possessions. But the problem is only some people think about what will happen to all these possessions after they pass away. This is where an estate plan comes into the picture. An estate plan is a crucial part of financial planning that involves legal tools like wills and trusts, power of attorney, medical directives, etc. that list down all the assets that you possess and how and to whom it should be transferred. A good estate plan will come into effect only with the guidance of an estate planning attorney.
How estate planning can help you die in peace?
- Shorter probate process: Probate is when an individual’s estate is distributed in court as per probate court orders after they die. This is a complicated and expensive process that can sometimes take months and years to solve. This also puts your hard-earned possessions to be distributed wrongly by the court. A good estate planning attorney will guide you through the probate process and reduce the length of the process. In some cases, they might completely avoid the probate process by creating a trust. A trust is not verified by the court.
- Protect your assets and loved ones: An estate planning attorney will help craft a good estate plan that will be in your best interests and protect your assets as well as your loved ones when you pass away. They will consider all the legal aspects of an estate plan and include them in the plan. The plan will include the required tools like a will, trust, power of attorney, medical directives, and guardian nomination.
- Reduce tax liabilities: Estate planning attorneys are experienced in this field and know what kind of estate plan will reduce tax liabilities. They will ensure that federal and state tax laws are adhered to and the legal heirs do not face tax liabilities in the future.
A good estate plan is essential not just for the wealthy but even for people with modest assets. A good estate plan will not only ensure your assets are passed down to your heirs but also protect them in the future from creditors, minimize their taxes, and ensure they are out of legal trouble. A seasoned estate planning attorney will ensure your wishes are carried out after your death or incapacitation and provide you with mental peace.