Is estate planning something that you keep intending to work on, but it always falls to the backburner? If you are procrastinating your estate planning, then it might be time to add this item to your resolutions for the New Year. A bit of work right now goes a long way to protect your assets and give you peace of mind in knowing that your family will be taken care of if something happens unexpectedly.
It doesn’t matter if you have an outdated estate plan that needs to be updated or if you are starting from scratch. Here are a few reasons why you should prioritize estate planning this year:
Protect Your Beneficiaries
Estate planning isn’t only for families with a high net worth. These preparations can be a valuable way for middle-class families to prepare in case something happens to the breadwinner. If you have any assets that will be passed onto your heirs, then estate planning helps to protect the value of these assets.
Even if the assets are relatively small in value, an estate plan gives you control over what happens to these things after you are gone. You have the opportunity to designate heirs for the assets. Without an estate plan, the courts decide who receives your assets, which can turn into a stressful situation for family members.
Reduce Tax Implications
Not only does estate planning pass assets and wealth onto your family members, but this strategy also helps to decrease the tax burden when the assets are transferred. Taxes are inevitable. But there’s no reason for beneficiaries to be overpaying in taxes when there are strategies to reduce or even eliminate both federal and estate taxes for inheritances and estates.
Avoid Family Conflict
Even if the family seems to be getting along, things can turn ugly when money comes into the picture. There are too many stories of a loved one dying, then a war breaks out among the beneficiaries. Siblings can turn into enemies if there are disagreements about how the assets should be distributed.
Estate planning helps to reduce the likelihood of these types of conflict. A good estate plan stops the fights before they start because the assets and details are already laid out in detail. You choose how your assets will be divided, then everything is outlined in the estate plan according to your wishes.
Consult with the Estate Planning Experts
If you need help with your estate plan, then Miles & Hatcher, LLP is the team to call. Reach out to our office to book your free consultation: (909) 481-4080.