While estate planning may sound like a fancy term for the absolute elite, it’s actually not just for them. In fact, anybody with any assets—not just mansions and antiques—and people worth leaving those to should look into estate planning.
From your home to car, investments, and any other personal possessions, everything is part of your estate. An estate plan would outline what everyone will receive from your possessions after you die.
Not having an estate plan means leaving this crucial distribution task to the state and courts, and they may not do the things the way you wanted them done.
Here are a few other reasons you start investing effort into estate planning.
Save Your Wealth from The Wrong Hands
It’s not uncommon to have complicated family ties but imagine all of your wealth ending up with the family member you despised the most. Let’s just say you’d be turning in your grave a whole lot.
To make sure your assets go to beneficiaries you approve of, you should name them in your estate plan.
You Can Improve Your Loved One’s Quality of Life
Estate planning not only ensures that your assets find their way to beneficiaries of your choice, but it also ensures that they have a better lifestyle. Because an estate plan covers investments and insurances, it acts as a financial buffer for your family even after your death.
Additionally, it can help you cut down on the taxes they’d have to pay when receiving the inheritance. Without the estate plan, the tax reduction could be significantly higher.
Help You Choose Your Healthcare Power of Attorney
While most people taking final decisions regarding a loved one’s health will be doing what’s in the person’s best interest, it wouldn’t hurt to assign this task to somebody you trust the most.
An estate plan could also include who you want to act as your healthcare power of attorney. This means the person you pick makes final decisions about your health in case you’re no longer able to do so. For instance, this could mean taking the decision of whether you should be placed on life support or not. Ideally, one would want somebody very close, trustworthy, and emotionally stable to make this decision.
Estate planning is incredibly crucial for one’s own mental peace, if nothing else. It can help you ensure that your inheritors will be able to lead a comfortable life after your death, without any major financial fiascos and disputes.
If you don’t yet have an estate plan in place, it’s time you start thinking about one. In fact, we might be able to help you. Our estate plan attorney in Reno can help you out.