If you don’t have one already, you may want to consider creating an estate plan for your family. These essential plans are important for people of any age to have in their files. They are used to organize your assets, property, and any other details you want to put in place after your passing.
While many people wait until they are older to create an estate plan, unexpected causalities can leave your family with disorganization and chaos. An experienced estate planning lawyer can walk you through the process of creating an estate plan to ensure that you don’t overlook any vital details. Having an estate plan can:
Reduce Estate Taxes
By designing a will or revocable living trust with an AB Trust or ABC Trust, married couples are able to reduce or even eliminate their estate taxes. This may save the estate from losing a significant amount to state and federal estate taxes, as well as state inheritance taxes. There are other techniques that can be used to save individuals and married couples from having to deal with excessive taxes stemming from their estate.
Avoid Probate
Many people seek out an estate planning attorney in order to avoid probate. Due to circulating horror stories in the media or within local press, probate is something that must be avoided at all costs. Probate involves locating the assets of the deceased and determining their value. Their final bills and taxes are then paid from the estate’s value, and the remaining is distributed to the decedent’s heirs.
Protect Beneficiaries
Putting together an estate plan will protect the beneficiaries of the estate by:
- Minor beneficiaries are protected by appointing a guardian to oversee the minor’s finances until they become of adult age. This could be either 18 or 21 years old depending on the specific laws of the residing state. As you organize your estate, be sure to appoint minor beneficiaries a guardian in order to prevent family discord.
- Adult beneficiaries are protected from outside influences, making bad decisions, divorcing spouses and creditor problems that may arise. If the adult beneficiary is bad with managing money or has an untrustworthy spouse that you fear will try to take the money, you can design an estate plan that will protect the beneficiary from these situations.
Avoid a Mess
Many people seeking the knowledge of an experienced estate lawyer have witnessed the disorganization and mess that can occur from not having an estate plan. Whether you have been the beneficiary of an estate that had no plan available, or you have seen a friend or colleague go through the stressful experience, creating your own estate plan is of extreme importance. Upon your passing, you certainly don’t want a family feud leading to costly court battles and eventual loss of your property.
Protect Your Assets From Creditors
Asset protection planning has gained popularity as a reason many people have decided to create their estate plans. Taking the time to organize your assets and assign them to specific beneficiaries will protect your things from being lost to creditors. AB Trusts or ABC Trusts can also be created to provide protection of your assets for your spouse.
Although you may be young, planning your estate is an important way that you can take care of your family and your possessions in the event of your passing. Talk to someone who specializes in estate planning law or set up a consultation with a lawyer to go over your questions in detail.