It is easy to fall into the trap of thinking that only the wealthiest people need estate plans. In reality, regardless of a person’s age or net worth, having an estate plan can still serve some valuable goals. Despite the advantage of having an estate plan, data reveals that a large number of Americans still lack adequate estate plans. Regardless of age or wealth, there are some significant advantages that you can realize by engaging in estate planning. This article briefly reviews some of these benefits.
To Determine How Your Assets are Passed on
The most basic document involved with estate plans are wills, which name a person who is responsible for the administration after your death. If you have children, it is also possible to name guardians in a will who will care for your children. Other times, you might decide to pass on your assets through beneficiary designations. Regardless of how you decide to pass on your assets, an estate plan can help.
To Reduce Taxes
Increasing the amount that you pass on to beneficiaries and reducing the amount that is lost in taxes is one of the central goals of estate planning. Fortunately, the Tax Cuts and Jobs Act of 2017 increased the tax-free amount that can be given away at a person’s death. The best estate plans utilize methods to pass on the greatest amount of assets to loved ones possible.
Achieving Charitable Goals
If you have charitable aims, estate plans can make sure that your goals are met. Preparing estate planning documents now lets you make sure that you pass on your assets to an organization that you care about and which you believe will make the most of your assets. If you do not clearly articulate how you would like your assets passed on now, they might not be distributed in a way that matches your goals later.
Protecting Family Wealth
Many estate planning strategies are capable of avoiding wealth, which can mean protecting assets from creditors who are involved in frivolous lawsuits. It can be challenging to determine whether an irrevocable trust, limited liability entity or other types of asset ownership works best in an estate plan. A knowledgeable estate planning attorney can review your current situation and help you take the greatest possible steps to preserve your family’s wealth.
Preparing Future Generations
Preparing the future generation can be the best way to make sure that valuable assets are preserved. While it might not seem like it, creating a strong estate planning is one of the best chances to create strong wealth planning goals as well as to educate heirs about what an estate means. If you do not perform adequate estate planning now, any assets that are passed on to your beneficiaries are likely to be viewed as nothing more than a windfall.
Contact an Experienced Estate Planning Attorney
There are a number of advantages that people realize from estate planning. If you need the assistance of an attorney to navigate this process, do not hesitate to contact attorney Jim A Lyon today to schedule a free case evaluation.