Estate planning is not something many of us really want to think about, but it is truly necessary. An estate plan is a set of documents that are legally bound outlining your plan for the distribution of your assets upon your death. Few of us want to think about death, much less our own, but these documents are incredibly important ones to consider. Before you contact a law firm such as Chudleigh Law, consider these points._!–more–>
If you want to be in charge of who inherits your valuables, possessions, and money, you must create an estate plan. This is your opportunity to name a guardian for your children if you pass away before they are adults. These documents outline decisions that you want to be made about your own health, if you are in a state where you cannot make them for yourself. Creating a plan when you are of sound mind to do so ensures you get to say who gets what and prevents any ugliness after your death.
Protect Those You Love
I am sure you have heard plenty of stories about families battling over who gets what valuables when someone passes away. You may even find it surprising what people fight over when someone dies. Items suddenly become more valuable. If you create your own estate plan, you get to make the decisions. If you do not create a plan, the courts most often will decide after many years, a lot of money, and potentially bitter fights. Estate plans are not only for the rich, or those that have a lot of possessions. This type of planning is for everyone that wants to be able to say what happens upon death. It is not enough to verbally promise an item to someone, you must legally document it. That way, when the time comes, there are no questions about what you wanted.
If you have young children, no matter your age, you need to protect them. With these documents, you say who will care for your children, how, and with what money. If you do not decide this ahead of time, the courts will make the decision. They may not make the decision you would have, so put it down on paper and create a legal document. You can also create individualized plans. If you have a child with special needs, they may need a plan more specific to them and this allows you the ability to do that. You may also have an heir that you do not want to give a lump sum, so you may set up a plan that gives that person a set amount of money per month for a set amount of years.
When you have an estate plan, it can protect your loved ones in ways you have not considered. If you plan how you want your estate divided and you document it, it can reduce the tax liability for your heirs. Estate and inheritance taxes can be incredibly hefty. You may be able to decrease that burden with your documents and planning ahead.