Estate Planning – Its Advantages
To many young couples, estate planning may never an immediate concern, or even a concern at all, for many reasons. Two of which may be due to their still young age and then there is the thought that they do not really belong to the wealthy class.
Both reasons actually count among the common mistakes about estate planning, which is defined as a plan, made before death, wherein you name those to whom you want to bequeath your assets and/or properties and determine when they can have their share. Now, believe it or not, estate planning is not just for the wealthy class. True that they have a lot to divide to those they will be leaving behind, but doesn’t everyone have something of value that he/she can or should pass on to someone? Like a house, a car, jewelry, savings account, furniture, life insurance and other forms of investment. These things may only have a modest value, but these surely are still worth something. And besides, if no will is made until a person passes away, then deciding who gets whatever that person leaves behind will be made by the state, a thing based on the Law of Intestacy.
Aside from determining in a will who gets what, estate planning also allows a person to give instructions regarding his/her care in the event that he/she becomes disabled or enters a coma (which will lead to physical and mental incapacity) before his/her death, name who will act as guardian and inheritance manager for his/her minor child/children, and so forth.
Another good thing about estate planning, besides your wishes concerning your assets being carried out, is that it can also help reduce the amount of taxes and do away with court hearings, thus, no unnecessary court and other legal costs.
Estate planning begins with a living trust or a will. Though the former may be more expensive, its long term benefits to heirs is much greater than a will since it can eliminate court interference and the probate process required by the state. But most importantly, as explained in an article posted in the website of the Chicago-based firm Peck Ritchey, LLC, estate planning will ensure that all of a person’s assets will be passed on to his/her intended beneficiaries, especially to minor children, in ways that are highly tax efficient.