Did you ever think about what will happen to all your belongings once you pass away? You might have a house, vehicle, savings, and investments. However, you now have to decide who will manage everything you own once you’re gone.
However, many people do not know what estate planning is all about. If you do not understand estate planning, cast your worries aside! In this article, we will talk about estate planning.
What is Estate Planning?
In the event of your demise, you will leave everything behind the physical plane. It is better to plan. By creating an estate plan, you ensure you leave your belongings to your family, relative, friend, or even an organization you admire. Estate planning will help carry out your final wishes.
Estate planning is a type of agreement where a person decides who will handle all their assets if they perish or become incapacitated. An estate plan eliminates the possible burden that an heir might receive, such as taxes, debts, and transfer of assets. If the beneficiary is a minor, a guardian will keep an eye over the assets until they reach the age of 18.
Estate planning lets you assign everything you own to the right people in case of your eventual demise. You can contact a Roseville Estate Planning Attorney who will show you how to create an estate plan properly. Aside from that, an estate planning attorney will ensure everything you leave will go to the right hands.
Your estate plan can include things that convey value. For example, your estate plan can detail your house, vehicle, furniture, jewelry, investments, bank accounts, land properties, and other valuable items. If a person fails to create an estate plan, their immediate family members will be the last in the segregation of assets.
Estate planning is a task you should not take lightly. While creating your estate plan, it is best to have an estate planning lawyer by your side. They will ensure you cover every detail adequately, and every asset you own goes to the right person or people. Aside from that, they are knowledgeable about every law that can make your plan fail-proof.
Importance of Estate Planning
Estate planning helps an individual plan ahead suppose they perish or become incapacitated. An estate plan details which will manage all your assets after your death. However, many people fail to establish an estate plan. Let us now share with you the importance of estate planning.
Proper Assignment of Assets
If there is no estate trust available, your government can decide the allocation of assets. There is a possibility that your friend or non-family member will receive your assets. It can happen without anything left for your family members. Estate planning ensures that all the people you like to manage your assets will receive them after death.
Efficient Transfer of Assets
If a person perishes without an estate plan, their estate transfer can take a long time to complete. Family disputes can also occur if they fight over the allocation of assets. To avoid family feuds, you must plan.
If your beneficiary is under the legal age, a guardian can temporarily take over. Once your beneficiary turns 18, they can then receive your assets for them.
Allocation of Assets if Incapacitated
If the grantor is alive, they can still apply for an estate plan if incapacitated. Estate planning helps incapacitated individuals decide who will manage their belongings. It is only possible if the owner of the assets cannot ultimately tend to their investments.
Reduce Taxes and Fees
There will be considerable expenses to cover when there is no estate plan after a grantor dies. There are a lot of taxes and fees involved with the transfer and segregation of assets. Fortunately, having an estate plan will help the beneficiaries save more money while making the process quick, affordable, and efficient.
Estate planning ensures that every asset that a person owns goes to their beneficiary. Without an estate plan, family disputes and many unforeseen difficulties might happen. An estate plan can also help an incapacitated person choose another individual to manage all their assets while they are still alive.