Estate Planning is one of the most important yet neglected aspects of personal finance. When dealing with our own mortality, people tend to procrastinate. It isn't very pleasant to think about death and what will happen to our family and our finances after we pass away. Having a basic estate plan, at the minimum, is essential to ensuring that your family is cared for after you are no longer here and your finances are distributed in the way that you desire. This plays a significant role in reducing stress and frustration for your loved ones in the event of your incapacitation or death.
Below are 4 reasons Estate Planning is so important:
1) Prevents your assets from going to Unintended Beneficiaries
A main component in estate planning is designating places for your assets. This can be your home or your stocks. Without an estate plan, the courts will decide who gets your assets. This is a process that can take years and can get ugly without a clear plan.
2) Protects your Family and Your Children
In order to ensure that your children are taken care of, after your passing. You will want to name their guardians in the event that both parents die before the children turn 18. Without this the courts can step in and make the decision for you. This could potentially determine who raises your child up until they turn 18 years old.
3) Stops your Family from having to Overpay in taxes
Estate planning can reduce all of the federal and state estate taxes or the state inheritance tax. Without a plan this can be very costly to your loved ones if you were to pass.
4) Eliminates the mess when you pass
By creating a plan this enables you and gives you the opportunity to make a plan for your finances and assets after your passing. By planning in advance it ensures that you have made the right financial decisions for you and your family.
If you need to make a plan to protect your family. Adkins Law located in Huntersville, NC can help you. Call today to set up your FREE Estate Planning consultation.