If you don’t have a structured plan in place, settling affairs after you’ve passed could become a lengthy and expensive probate process for your family. Learn more about family preparation and guidance. At HereToday, we provide a platform to share and distribute the right information to your executor and loved ones at the appropriate time.
As mentioned in a previous article, ‘Power of Attorney vs Living Will, What’s the Difference?’, HereToday is not a legal service; as such, please seek professional advice when creating any legal document. In this blog we’ll outline a few reasons why every person should have a detailed estate plan.
What’s an Estate Plan?
An estate plan is a document that outlines who will inherit your assets after you’ve passed away. While death is not an easy topic to discuss, creating an estate plan is definitely a worthwhile exercise.
Whether you’re a corporate tycoon or an hourly wage earner, everyone needs to plan for the inevitable. The main goal of an estate plan is to protect your beneficiaries. It’s an exercise of outlining what assets you own and who you want these items transferred to upon your passing. Everything from your home to a stock portfolio needs to be designated to your heirs.
Guidance and Asset Allocation
Without guidance from a last will and testament or an estate plan, your assets will be distributed by a court on your behalf. This probate process can be expensive and take years to complete, so please create a plan as soon as possible.
The Bloomberg opinion article ‘Millennials, It’s Time to Talk Estate Planning With Your Parents‘ by Erin Lowry outlines the need to be proactive before it’s too late.
In addition to providing clear guidance of asset allocation, an estate plan can protect your family from incurring an unfortunate tax burden. Not only has your family lost you, but now the government wants a piece of your hard-earned pie. A skilled attorney will help you craft a solution that minimizes federal and state inheritance tax. Consider the benefits of a living trust.
While you love your siblings, some families have issues. Fighting among brothers and sisters, uncles and aunts, could create legal fights upon your passing. You can avoid this issue by planning exactly how your assets should be distributed. In an estate plan, you designate who controls your finances and assets upon your passing; or if you become mentally incapacitated.
Lastly, if you have young children you’ll need to structure a plan, usually in conjunction with a will, that provides for their future. If your children are under the age of 18, the document will name your selected guardians. Don’t leave this decision to the courts.
HereToday’s goal is to help you and your family members prepare for an end of life event. Through our platform, family members access important digital records, accounts, and memories when you become incapacitated or pass away. It can be a sad topic to address, but it’s best to prepare your family and loved ones for when the occasion arrives.
Disclaimer. HereToday is not a legal service. This content should not be taken as legal advice. Before drafting any legal document, please consult an attorney.