We work a significant chunk of our lives to generate enough money to live comfortably for as long as possible. If we’re lucky and do a good job of managing resources, we will pass on with some extra assets yet to be cashed in. Whether it is money sitting in the bank, investments that are still in the market, or physical assets like a house or car, most people pass on with many things of value still left.
In the result of a death or the loss of capacities, it is essential to have contingencies for the distribution of assets. Many people choose to give what they have remaining to their family, others to charities or foundations, while some give to friends and neighbors. What you do with your assets is up to you, but what’s important is that you have a plan in place in case the worst happens, regardless of your age or health.
The act of having arrangements in case of death or incapacitation is known as estate planning. In this guide, we will inform you what estate planning is, why it is essential that you have a plan in place, and why having the right attorney is a necessity to help guide you along the way.
What is Estate Planning?
As briefly discussed above, estate planning is the advanced arranging of what will happen in the event of death or the loss of ability to handle your own care. Estate planning is typically thought of as simply drafting a will. A will is where the wishes for the transition of property, investments, and banking accounts are laid out in a legally binding document. Wills are an essential component that will help you secure the future you want for your remaining resources. However, there’s more than just the distribution of wealth.
Estate planning goes beyond wills and allocating funds. It lays out the final wishes of the person on a variety of significant issues. According to estateplanning.com, it encompasses some critical decisions such as instructions for care should the person become incapacitated, a guardian for any minor children’s care, and the transfer of a business if the owner retires or becomes incapacitated.
Overall, estate planning is an ongoing process, not just a one-time will. It is something everyone should start considering, even at a younger age, because having a contingency in place is critical.
Why is Estate Planning Important?
Estate planning is important because life can be unpredictable and often dangerous. Whether you’re a retiree with a history of health problems or a 35-year old who is running marathons, it doesn’t matter. You need to have some type of plan in place in case the worst happens. At the risk of sounding grim, no one involved in unpredictable accidents expects these accidents to happen to them. The importance of estate planning is that you protect your assets, take care of your family, and ensure that your wishes are fulfilled when you’re not capable of handling them yourself.
If you pass away without a legally binding estate plan, the court will then take control. According to the same breakdown by estateplanning.com, they will dictate the process according to your state’s intestacy laws. Intestacy laws are state laws that govern inheritance. They typically pass the estate to the spouse or any remaining close family. Intestacy laws take the control out of your hands and put it into the courts.
Planning ahead saves you from leaving your inheritance in the control of the government. Make your own decisions, plan ahead, and get an estate planning attorney to help dictate the process.
Estate Planning Attorneys: A Necessary Solution
Similar to all other legal matters, estate planning is best left to professionals. While there is a higher cost associated with working with an attorney rather than tackling it yourself, it is also much safer. Estate planning requires extensive knowledge of the legal process of inheritance, the ability to draft a legally binding document, and someone capable of defending family members in court to uphold your will which is why you need an estate planning attorney.
Estate planning attorneys will work with you to draft a comprehensive document that enforces your plan for worst-case scenarios. They are family-oriented experts that have made a career of helping people uphold their final wishes.
Your estate is the culmination of your life’s work. You’ve accrued a lot throughout your life, whether you think so or not, and having an extensive, legally binding plan to ensure your wishes are enforced is important. Make sure you look after your loved ones with a comprehensive estate plan in place. Request an appointment today.