courtesy: outlook retirement
Estate planning should not be taken for granted. This is because, without a plan in place, settling your affairs after you go could have a long lasting and costly impact on your loved ones, that is even if you don’t own a pricey house.
An Estate Planning protects young children
No one ever thinks about dying young; but if you are a parent with little kids, then there is the need for you to prepare for the unthinkable. This brings us to the will portion of an estate plan. To make sure your children are raised in a way that you would approve, it would be necessary to identify their guardians who will take over their custody should both parents die before they turn 18.
An Estate Planning spare heirs from big tax bite
Estate planning revolves around safeguarding your family members’ interests, which includes protecting them from the clutches of the taxman. Part and parcel of estate planning is transferring assets to beneficiaries with an eye toward minimizing any possible tax obligations on their part.
An Estate Planning eliminates family messes
We have all heard these stories with unhappy endings where rich people died, and war broke out between family members over wealth distribution. One sibling may feel entitled to more than another or even believe he/she can manage finances better regardless of being well known for financial debts. Such a scenario can get ugly and escalate into a court case whereby family members turn against each other.
An Estate Planning protects beneficiaries
Estate planning is no longer considered only for the super rich people. Nowadays, many middle class families need to plan for when something happens to their family’s breadwinner. After all, one does not have to be super-rich to do well in the stock market or real estate, both of which can produce assets, which can be passed on to your heirs.
