A Simple Plan: Planning

Estate Planning: Why It’s so Important Many people seem to spend more time planning to eat out or a vacation than they do planning who’ll inherit their estate. Of course, estate planning might not be as enjoyable as booking a vacation or checking out reviews of restaurants, but without it, deciding who inherits everything you’ve really worked hard for is impossible. Estate planning isn’t for rich people only. Without an estate plan, there might be a long-term impact on your family, even if you have no large investment account, pricey home or valuable piece of art to hand down. If you’re not convinced that you need estate planning, here are 4 reasons why planning for your estate before you die is very important. Stops unintended beneficiaries laying their hands on your estate
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Estate planning is vital for the rich as well as middle class people. After all, you need not be extremely rich to prosper in the real estate or stock market fields, both of which generate assets you’ll want to hand down to your inheritors. Even if you’ve only got a second home to leave behind, if you don’t pick who gets it when you pass on, you won’t have any say as to who gets the property.
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Protects families with little kids If you’ve got young kids, you need to be ready for the unthinkable. To make sure your children are looked after how you want it, be sure to name their guardians in case both of you die before the kids are 18. Otherwise, the courts are going to step in and determine who’ll look after your children, not who gets part of your real estate or piece of art. Stops inheritors overpaying taxes Estate planning is essentially about protecting your closest relatives, which means partly shielding them from massive tax hits. Passing on your assets to inheritors with the objective of leaving the lightest tax burden possible is essential to estate planning. Even with a tad of estate planning, parents can reduce their inheritance taxes, as well as state/federal estate taxes, which might be very steep. Without a plan, however, your heirs will owe the government quite a lot of money. Ends family wrangles after you pass away We have all heard about family squabbles that happen when somebody rich passes away. This wrangling can turn ugly and wind up in the courts, with relatives taking on each other. This is one more reason why it is imperative to draw up an estate plan. This will let you decide who controls your estate should you become mentally incapacitated or pass away. It’ll also help a great deal in squashing any family dispute and ensuring that your assets are handled how you want them handled.

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