Death and taxes are the two bitter truths of life. As such, it is incumbent upon each individual to strategize for a comfortable life for his loved ones in the post-death scenario. Estate planning is an effective way of doing so and achieving tangible gains. In this legal arrangement, you anticipate and arrange for a hassle-free management and disposition of the assets that are an outcome of your lifelong toil and vision. Additionally, it is instrumental in restricting taxes and liabilities that can take a toll of your savings. Here are the top four reasons why estate planning makes sense.
Ensures your assets end up with intended beneficiaries
Erstwhile a prerogative of elites, estate planning is the new norm. Nowadays, even individuals from a middle-class background are trending towards estate planning to ensure that their assets end up with the designated heir in a timely manner. In absence of any such initiative, it is up to the court to decide the person or persons who may inherit your assets. Moreover, the legal proceedings often take years, leaving behind a trail of disgruntled and beleaguered heirs. Even your surviving spouse will have a hard time proving her claim in the court. On the other hand, estate planning renders you the power to decide the fate of your property long after you depart from the scene.
Provides for your immediate family
As the sole breadwinner, you strive hard to provide for your immediate family. Seemingly, your untimely departure will get them into a state of emotional and financial mess. On the emotional front, the loss may be irrecoverable for your spouse and kids, but their financial misery can be addressed with an appropriate estate plan. You can ensure a stable income for your surviving spouse and facilitate kids’ education and upbringing in the best possible ways. Also, you are in a position to designate personal guardians for the young ones in case your spouse expires.
Secures health decisions
Estate planning serves as a hedge against financial issues emanating from any physical or mental incapacity that you may have to contend with in the elderly days. Living wills, which are an integral part of estate planning, help you make decisions regarding life support, well in advance. Additionally, you can designate health care powers of attorney to a reliable person who may take key decisions regarding your treatment.
Expenses involved in the transfer of property can be significant enough to eat a major chunk of your savings. The expenses are more pronounced for properties exclusively owned by you. In fact, the parties involved in the process, including the executor and attorneys, will get remunerations from savings that your heirs are supposed to inherit. Here too, estate planning comes in handy. With a proper estate plan, you can minimize expenses and pass on the savings to the rightful heir.