What is estate planning and why is it important?

Estate planning is the process of managing an individual’s estate or asset base during his/her life and after death. It includes preserving, arranging, and distributing your estate to whom you want to receive them in the event of your incapacitation or death. Estate planning involves the settlement of estate taxes, expenses, and financial obligations to reduce or eliminate the uncertainties over the ownership for the smooth transfer of the assets.

Estate planning is the way to control how the estate or properties of any individual will be given to the people they care most about. The estate on an individual includes everything he/she owns such as houses, real estate properties, cars, life insurance, checking and savings accounts, stocks, investments, other personal possessions, and debt. The estate planning determines these things as per the wish of the estate owners:

  • Whomthey want to receive their assets
  • Whatthey want them to receive
  • And, when they want them to receive it

These things are planned and managed in advance to minimize legal fees, taxes, and court costs. It is planned for you and your loved ones by protecting your estate, assets value, and your family. Estate planning is the most important thing that you can do in your lifetime.

The most important devices to manage and arrange someone’s assets are wills, trusts, probate, and assets protection.

  • A Will is the most common tool of estate planning for the distribution of an estate in the simplest way.
  • Probate is a judicial or legal process in a court of law as the acceptance that a will is valid and authentic.
  • A Trust is the estate planning tool that protects and directs the distribution of assets.
  • Asset Protection is a tool to keep your loved ones out of the court system by protecting your assets from potential creditors.

Why Estate Planning is important?

  • It protects beneficiaries by preserving family wealth.
  • It protects young children and provides funding for their education.
  • It helps your heirs avoid overpaying in taxes.
  • It helps you choose who to receive your assets.
  • It avoids family messes.
  • It protects your assets and your family interest.
  • It is like a plan for your own needs and future.
  • It helps you choose a guardian for minor children.
  • It minimizes transfer taxes, legal fees, and court costs.
  • It keeps your loved ones out of the court system.
  • It gives your peace of mind.

Estate planning should be done with the help of an experienced attorney who practices estate law. Any estate plan begins with creating a will or living trust and appointing the right executor. It is for everyone to plan for your retirement and make arrangements and instructions for the smooth transfer of your assets after your death. It protects the interests of your family and loved ones and should reflect how much you care for them. For this purpose, you should consider hiring an experienced estate planning attorney to plan it for you based on your individual goals. Estate planning is not a one-time event, it is an ongoing process and a professional estate planning firm can make a difference.

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