Four Reasons Why You Should Create an Estate Plan

While the term "estate" is commonly associated with the ultra-rich, estate planning is not limited to the wealthy. Everyone can benefit from having an estate plan, which is a collection of documents that specify how you want your assets distributed, regardless of family dynamics or financial status. Even so, the majority of people have failed to make such plans.

While there are many reasons to have an estate plan, it’s imperative to understand that having one does not mean you are prepared for the future. To ensure your loved ones are taken care of after you are gone, but also during your lifetime, it is important to talk with a qualified estate lawyer Mesa. Consider the following reasons why you should speak with an expert lawyer about your wishes sooner rather than later if you haven't yet included an estate plan in your overall financial plan.

Here are four reasons why everyone should have one

1. To Prepare for Your Own Needs

While most people think of an estate plan is something you need when you die, few realize it can also protect you and your assets if you become incapacitated or unable to make decisions for yourself. Consider what insurance you'll need if you're no longer able to provide for yourself after estimating your cash flow needs in the years leading up to retirement and beyond.

Consider appointing a healthcare proxy or power of attorney who, if necessary, can make medical and financial decisions on your behalf. If you're unable to speak for yourself, discussing your intentions with expert lawyers in Mesa AZ those you trust can help ensure that your wishes and needs are met.

2. To Be Able to Dispose of Wealth in the Way You Want

If you don't have a will or a living trust, the state in which you live will usually decide how your assets are distributed after you pass away. Hire a probate lawyer so that proper documentation can save your family members time and money while also ensuring that your assets are distributed according to your wishes.

At the very least, make sure the designated beneficiaries on your investment accounts and, if applicable, life insurance policies are up to date on a regular basis. A will or trust also specifies how your assets should be distributed after your death.

3. Transfer Taxes as Low as Possible

If you or your family has gained a significant amount of wealth and wish to pass it on to other family members or loved ones after your death, the estate planning process can assist you in devising a strategy to do so in the most tax-efficient manner possible. 

When transferring money, there are three types of taxes to consider: estate tax, gift tax, and generation-skipping transfer tax. Because the IRS places restrictions on how much money you can transfer and to whom you can transfer it without being taxed, a good estate plan outlines a wealth transfer strategy that tries to minimize the taxes you or your estate deserve. You should seek out estate planning services for yourself and your loved ones so that their futures are protected.

4. To Safeguard Family Wealth

Across the whole of your life, your assets may be challenged in a variety of ways. As people become wealthier, they are more vulnerable to frivolous lawsuits that try to take advantage of their hard-earned money. Estate planning protects your family's wealth by transferring assets out of your name and into legally-protected vehicles like trusts or limited liability companies. Insurance is also important—in addition to the basic areas where it is required, certain types of insurance can help you increase your estate or protect you from a variety of legal issues.

Protect your assets for your dear ones with Compton Law P.C.

The process of estate planning can be difficult and emotional. However, the sooner you begin, the better prepared you and your family will be to deal with a variety of difficult situations. Because of the legal complexities involved in estate planning, it's usually best to seek legal advice from Compton Law P.C.'s expert estate planning attorney before making any major decisions. You can also seek advice from their real estate attorney in Mesa, AZ, in the event that you are buying or selling a home. They can assist you in navigating the process and developing strategies to safeguard your assets. Get in touch with them right now for more information!



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