Estate planning is the process of arranging and anticipating for the estate’s disposal during a life of a person. It helps to eliminate the uncertainties over the administration of a probate and it helps to minimize the estate’s value by reducing the taxes and other such expenses. The ultimate goal of the estate plan however is determined by the client’s specific goal and it can be simple or complex as the needs of the client dictate. For the minor beneficiaries and minor children, the guardians are often designated for their incapacity. To some degree, it overlaps with the elder law. In addition, it includes other provision as long-term care.
Estate planning involves trusts, will, powers of appointment, beneficiary designations, power of attorney, and gift and property ownership, specifically the durable medical power of attorney and durable financial power of attorney. Here, are some of the benefits of Estate Planning.
- Peace of Mind: Everybody knows that death will come to everybody. Death is certain yet it is uncertain. There are some people who worry that what will happen to their properties once they expire. They think that will their loved ones will be able to inherit their property after their death or not. If planning is done beforehand then it gives a peace of mind. The person knows that his/her property will go to the designated heirs when they pass away. The person can also specify in his/her will that how much each of his/her heir will receive after his/her death and they also decide that through which mode they will receive their asset.
- Providing for Loved Ones with Special Needs: Another great concern for a person is if they have a family member or relative is either mentally or physically disabled. If a will is in place, then one can be assured that the family member or the relative who needs special needs will be provided with such needs after his/her death.
- Helps Heirs With Inheritance: There may be some heirs who are inexperienced when it comes to managing their inheritance. If such is the case then the inheritance may not be long-lasting and it might be spent on impractical things. By doing the planning beforehand, a person will be able to specify that what the inexperienced heirs should do with the assets which they have inherited to make sure that it is used for getting important things like good education, a nice house, making wise investments and others.
- Protecting Children: Another great benefit of estate planning is that the person is able to protect the inheritance of his/her children in the event that his surviving spouse gets remarried after his death with someone who has children. If the will is planned carefully then the inheritance of the children is protected while the surviving spouse is still provided for. By doing this, the worry factor about the children or stepchildren from a later marriage claiming the part of the estate is been eliminated.
- Minimizing or Avoiding Estate Taxes: Estate planning is not only about putting a will together but it also mean to secure one’s asset to make sure that his/her inheritor is able to get it in the most tax-effective way. A well-drafted estate plan or will can minimize or avoid various taxes if it is done with an expert estate planning lawyer.