The Top 5 Reasons for an Estate Plan
1. Avoiding Probate
The most common reason why people seek the advice of an estate planning attorney is to avoid probate. While many have never even dealt with probate, they still know one thing - they want to avoid it at all costs. This stems from probate horror stories by neighbors, friends or business associates. Avoiding probate is a very good reason for creating an estate plan.
2. Reducing Estate Taxes
The significant loss of one's estate to the payment of federal estate tax is a great reason to put an estate plan together. Through the most basic planning, married couples can reduce or even possibly eliminate estate taxes altogether by setting up a revocable living trust.
3. Protecting Children under 18 years old
If a beneficiary is under 18 years old (a minor), the law requires a guardian to be appointed to oversee the minor's needs and finances until the minor becomes a legal adult. You can prevent family discord and costly legal expenses by taking the time to designate a guardian and trustee for your minor beneficiaries.
4. Asset Protection
A plan to protect your assets against creditors must be created before you suspect that a lawsuit is on the horizon. A comprehensive estate plan will protect your assets during your lifetime and to your beneficiaries after your death.
5. Reducing Family Conflict
Many clients seek the advice of an estate planning attorney after personally experiencing, or seeing a close friend or business associate experience, a significant waste of time and money due to a loved one's failure to make an estate plan. Deciding who, in advance, will get what, when they will get it, and how they will get it after you are gone will go a long way towards avoiding family fights and costly court proceedings.
1. Avoiding Probate
The most common reason why people seek the advice of an estate planning attorney is to avoid probate. While many have never even dealt with probate, they still know one thing - they want to avoid it at all costs. This stems from probate horror stories by neighbors, friends or business associates. Avoiding probate is a very good reason for creating an estate plan.
2. Reducing Estate Taxes
The significant loss of one's estate to the payment of federal estate tax is a great reason to put an estate plan together. Through the most basic planning, married couples can reduce or even possibly eliminate estate taxes altogether by setting up a revocable living trust.
3. Protecting Children under 18 years old
If a beneficiary is under 18 years old (a minor), the law requires a guardian to be appointed to oversee the minor's needs and finances until the minor becomes a legal adult. You can prevent family discord and costly legal expenses by taking the time to designate a guardian and trustee for your minor beneficiaries.
4. Asset Protection
A plan to protect your assets against creditors must be created before you suspect that a lawsuit is on the horizon. A comprehensive estate plan will protect your assets during your lifetime and to your beneficiaries after your death.
5. Reducing Family Conflict
Many clients seek the advice of an estate planning attorney after personally experiencing, or seeing a close friend or business associate experience, a significant waste of time and money due to a loved one's failure to make an estate plan. Deciding who, in advance, will get what, when they will get it, and how they will get it after you are gone will go a long way towards avoiding family fights and costly court proceedings.