Estate planning is often viewed as only for the uber-wealthy or business owners. However, it can be beneficial for everyone regardless of the amount of assets they have. During this year’s Estate Planning Awareness Week, here at the Law Offices of Marc N. Needelman, we want to emphasize the importance of estate planning. Speak with an experienced Hartford County probate attorney for more information about how to start your estate planning journey today.
What is Estate Planning?
Estate planning is the process of preparing for and organizing how an individual’s assets will be distributed in the event of their incapacitation or death. It may sound morbid, but estate planning is crucial to ensure that your property and assets are handled according to your wishes when you are unable to make those decisions.
Why is Estate Planning Important?
Estate planning is so important and can benefit both you and your family. Consider the following ways that the process is necessary.
- It minimizes taxes: Proper planning can reduce estate taxes for your loved ones. Establishing a trust, making charitable donations, and other strategies can decrease the taxable value of your estate and leave your family with more assets.
- It ensures your wishes are honored: One of the main reasons for estate planning is to ensure that your wishes regarding the distribution of your assets are carried out. Without an estate plan in place, state laws will dictate how your property is divided which may not align with what you want. By creating a will or trust you can establish who receives your property and under what conditions, preventing controversy or disputes among family or government agencies.
- It protects your family: Through estate planning, you can ensure that your family is taken care of. In a will or trust you can name guardians of children to make sure they are cared for by trusted individuals.
- It allows you to avoid probate: Probate is the process of validating a will and distributing assets. It can take a long time and a lot of money to go through the probate process. With estate planning, you can decide to put your assets in a living trust which allows your assets to avoid probate and lets your family receive their inheritance earlier and with less cost.
The above reasons and many more prove the importance of proper estate planning.
Why Should You Consider Updating Your Estate Plan?
Updating an existing estate plan is important every once in a while. Life can throw curveballs at you and circumstances are always changing. When major life events arise like marriage, divorce, births, or deaths, it may be wise to consider updating your estate plan.
These major and inevitable changes can impact the effectiveness of your estate plan. For example, after a marriage or divorce, it may be necessary to change the beneficiary of certain assets or guardianship arrangements of minor children.
Even changing jobs, acquiring new assets, or changes in your financial status may warrant an adjustment of your plan. Estates have certain tax implications and are governed by various laws that are ever-changing. Regularly reviewing and updating your estate plan is important to ensure it aligns with your current wishes and situation.