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People usually associate estate planning with wealthy people, but everyone can benefit from an estate plan. An estate plan is a variety of documents that determine how your assets will be distributed upon your passing and can even protect you if you are incapacitated. Estate plans provide benefits for everyone regardless of financial status.
Plan for Your Own Needs
During estate planning, you will review your assets and liabilities, allowing you to determine your cash flow needs leading up to retirement and during retirement. When estate planning, you will also want to execute a medical and financial power of attorney. These documents designate one or more people to make medical and financial decisions on your behalf when you can no longer make those decisions.
Protect Your Beneficiaries
An estate plan will allow you to determine how your assets will be distributed and in what manner, which can protect beneficiaries from themselves. Additionally, if you have minor beneficiaries, a document in your estate plan can name who will care for them if they are minors when you pass. Your plan could also designate individuals to handle the minor’s money until they become legal adults or until they reach an age of your choice.
Planning who will care for your children and their money can prevent family drama and likely save your estate money. For example, without this designation, family members fighting for legal guardianship will need to spend large amounts of money on legal fees and court costs to get that guardianship, creating animosity in the family. In addition, when the beneficiary is already an adult, an estate plan can prevent them from wasting their entire inheritance if that is a concern.
Distribute Your Assets According to Your Wishes
When you pass away without an estate plan, your assets will be distributed based on the intestate succession of the state you lived in when you passed. With an estate plan, you can make sure your assets go where you mean them to. For example, under intestate succession, if you have multiple children and no surviving spouse, they will receive equal shares of your assets. However, if one of your children has borrowed a lot of money and you agreed to take it out of their inheritance, an estate plan allows you to account for that.
Reduce Taxes
An estate plan also allows you to minimize the taxes collected on your estate. You can plan ways to reduce your estate through gifts. You could place some assets in special trusts to reduce some taxes. Through an estate plan, you can keep more money for your beneficiaries.
Support a Charity
When you create an estate plan, you can give money to your favorite charity or multiple charities. If you do not have an estate plan, your assets will go only to the people outlined in the intestate succession laws in your state of residence.
Contact an Experienced Brandon Estate Planning Attorney Today
Anyone can do estate planning at any age. However, you should create an estate plan when you have assets or beneficiaries to protect. Contact an experienced Brandon estate planning attorney to make the most of your assets for you and your family today. To schedule a consultation, simply contact our office at (813) 438-8503.