Most of us associate estate planning with mansions, art, antiques, stock portfolios, or other pricey possessions like yachts, cars, and fine jewelry that high-net-worth individuals leave behind after they die. That’s why not many people think about estate planning. Instead, we devote more time to planning vacations, buying the latest cars, and choosing the best restaurants for dinner. The truth is estate planning isn’t just for the ultra-wealthy or the older folks. Regardless of financial status or age, everyone can benefit from an estate plan.
With a reliable real estate agent, you can comfortably invest in estate planning early as part of your personal finance project. According to the National Association of Realtors, over 86% of buyers say they found their real estate agent to be a valuable source of information. Therefore, with some good strategy and with the correct information, you can invest like the wealthy and reap the benefits in the long term.
Saves Time and Money
When you die without leaving a will behind, it means you died intestate, which means the laws of your state determine what happens to your assets. The court will find a representative to distribute your assets. In most cases, the surviving spouse is given the task. If you don’t have a spouse or anyone willing to take up the job, the court will name a public trustee to distribute the assets according to the state laws.
No one is allowed to touch your assets when all this is going on. Everything is frozen until the court system finalizes every detail of the estate. The process can be time-consuming and may take months or years, especially in big cities. Estate planning ensures that your beneficiaries easily access their share of the assets.
Protects Beneficiaries
Sometimes death comes abruptly, and you have no time to make decisions. Estate planning is one of the best ways to ensure your beneficiaries are safe if you pass away suddenly. There are so many terminal diseases today, many of which people don’t know about. For instance, according to the CDC, one in 10 people who get Legionnaires’ disease are likely to die from complications of the disease.
Even if you have few beneficiaries and many assets, if you don’t decide who gets what when you pass away, you won’t have control over what happens to it. As the owner and breadwinner, you know better who deserves what based on how responsible they’re.
Helps You Avoid Big Taxes
Estate planning allows you to protect your beneficiaries from the Internal Revenue Service (IRS). When assets are transferred to heirs, you relieve them from the heavy tax burden. A bit of estate planning can help couples to decrease a significant or even all of their federal and state taxes and state inheritance taxes. There also exist ways beneficiaries can reduce the income tax they have to pay. It’s critical to know that the IRS taxes cryptocurrencies as an asset and subjects them to short- or long-term capital gains. According to Investopedia, the open-source code that powers Bitcoin and other 6,000 cryptocurrencies is known as blockchain.
Protects Young Children
Nobody plans or ever thinks of dying young, but it happens. If you’re a parent of small children, you must prepare for the unthinkable, and that’s where your estate planning will come in. The best thing you can do for your young ones is to ensure they’re cared for in a manner you approve. You will want to name their guardians in case both parents die before the children turn 18. This ensures that the court doesn’t just appoint anyone to decide who will raise your children.
We’ve all heard horror stories where families go to war to acquire the property of the deceased. Some siblings feel they deserve more than others, while others feel they should be in charge of certain things. Estate planning is the best way to ensure there is peace and that everyone is satisfied.
