There are many reasons why you should create an estate plan. Estate plans are extremely important for the future of your inheritance. Estate planning involves appointing a person who will receive your assets and handle your responsibilities. Estate plans ensure that your inheritance is properly managed and is distributed the way that you want.
You Designate An Executor
The first reason why you should create an estate plan is that you are in charge of your affairs. If you do not designate who is responsible for representing your estate, then the court will assign someone to be the executor. This may mean that someone that you would not approve of could be in control of distributing your estate. If you are able to build an estate plan, then you can appoint your own will’s executor.
Removes The Need For Probate Law
Creating an estate plan eliminates the problem of probate. Probate proceedings are very expensive and can be problematic in that the court is in control of your assets. A solid estate plan makes it possible for you to avoid a public and time-consuming probate proceeding. Estate plans allow you to quickly, privately, and effectively leave your money to your heirs without the hassle of needing to go to court. An estate plan protects your family from needing to spend money on court proceedings and from potentially not being able to get the
Protect Your Assets
Another reason why estate planning can be useful is that it helps protect your assets from unwanted hands or makes sure that those you do want to receive your inheritance can receive it. If you went through a divorce, then you need to make sure that your children from your first marriage are able to be treated the same as the children of your second marriage, assuming you want them to have similar shares of your estate.
An estate plan also protects your assets from situations in which your children or other heirs may find themselves in. For example, consider that you have a grandchild who goes through a divorce after your passing. If you have an estate plan, then you can state clearly that you would like a certain part of your inheritance to go to your grandchildren rather than a grandchild’s ex-spouse. When you create an estate plan, it makes it much easier to protect your assets.
Imposes Discipline On Irresponsible Family Members
Having an estate plan imposes discipline on irresponsible family members. If you have found that you have a family member that you would like to inherit a percentage of your fortune is irresponsible, then it may behoove you to create an estate plan. This ensures that their inheritance is protected from mismanagement or requires them to do certain things in order to receive the inheritance.
An estate plan also ensures that if you have young children as heirs that they are able to inherit what they are supposed to inherit without the interference of their parents. Essentially if you set up a college fund for a child, then that money would only be used for college and not for anything else.
Do You Need To Create A Estate Plan?
If you decide that you should create an estate plan for your inheritance, feel free to reach out to us at Stevenson, Smith, Hood & Knudson. We offer many different options for individuals looking to make an estate plan. Our goal is to make the process of settling your estate as easy and seamless as possible. We believe that every person should create an estate plan; no matter what their financial situation is. If you are in need of an estate plan, we would be happy to help you out. Reach out today for more information.