Inheritance planning is part of the overall estate planning process. Estate planning will prepare your family for what will occur in the event of your death. Planning for the future is essential, especially when there are times of uncertainty. Planning ahead gives you the opportunity to determine who you would like to have inherit your property, and it will reduce estate taxes.
An inheritance plan is a part of the estate plan that designates who will receive property and how you want them to receive it. Proper inheritance planning will involve information about your heirs and how you want your overall estate distributed to them. The estate plan is then put into place to make the inheritance plan legal.
Why Inheritance Planning?
Inheritance planning is designed to keep your property from being taken by someone you do not want to have it. Failure to make a proper decision about who will receive your assets means you are allowing the court to make this decision on your behalf. If the court is required to make this decision, it could take years for it to be completed. In many situations, family disputes erupt and the surviving spouse could be left with nothing.