Unfortunately, after you’re gone you aren’t going to be around to help out or pick up the pieces. I’m betting that there will be a ton of people that you will leave behind that care a great deal about you.
These people will be going through an extremely difficult time dealing with your passing, but it will be even more difficult if you haven’t done any estate planning when you were alive.
Why Estate Planning Is Important
Estate planning is an extremely important thing to take care of early in your life. Then, after you’ve established your estate plan the first time, you should update it often.
The reason why you should take care of estate planning early in life is because it is always best to be prepared. You never know what could happen tomorrow and you don’t want your loved ones to have to go through the pains of trying to figure out every part of your financial life after you are gone.
Estate Planning Helps Those You Care About Most
Estate planning helps you to ensure that those you care about most are taken care of. Rather than letting the courts decide how to divide your estate, you can specify exactly what goes to each person. Make sure you take care of the people that are most important to you.
You can make sure your assets are properly set up to reduce the potential tax burden, too.
Estate Plans Allow You To Determine Your Money’s Destiny
Estate plans can ensure that your assets are used in the way you want. Maybe you’d prefer to have all of your assets go to a particular charity or to start a foundation in your name that supports a particular cause. You can do exactly that if you get your estate plan set up properly!
You could also put your money in a trust for your children so they don’t blow all of the money before they turn 35. If your children are young, you could set certain stipulations on when they can receive different portions of the money you’ve left to make sure they don’t blow it all on beer in college. They’ll thank you once they’ve matured financially.
Estate Planning Can Help Tax Consequences
Estate planning can also help ensure as much of your money gets to the intended recipients as possible. There are many complicated tax issues that can take place depending on how your estate is structures and how tax laws change.
Unfortunately, a lot of your money could end up going to pay taxes if it isn’t structured properly. A well written estate plan can help avoid these issues, but it needs to stay up to date with the most recent tax law. Tax law changes often!
Update Your Estate Plan Often
You always hear about the importance of having an estate plan, but what you don’t hear quite as much of is the fact that you should review and update your estate plan often. Why?
Life changes constantly. Wouldn’t it be horrible if you had a major life change and forgot to update your estate plan? It’d stink to get married to the love of your life and then forget to add him/her in the estate plan and then have something happen.
Find An Expert To Help You Craft Your Estate Plan
I am not an expert in estate plans, so I can’t tell you how to set one up. I can only impress how important they are and hope you’ll listen! Once you’ve decided you need to get moving, find an expert that you can trust to help you set up your estate plan. It’ll be well worth the money just by giving you some peace of mind.
Don’t allow yourself to live without having an estate plan in place if you have people that rely on you, your assets and your income. It isn’t fun, but it’ll be some of the best time and money you can spend in your life.
Do you have an estate plan? If not, when are you going to set one up?