Whether a person has small, medium large proportion of wealth, it is necessary to make an estate plan. Many people tend to think that this exercise should only be done by the rich individuals. This is a document which explains what should be done to the assets after the owner dies. It requires a lot of effort and time so as to create comprehensive ideas to avoid inheritance of property to unintended persons. There are various reasons why it is important to do estate planning GA some of which are discussed below.
First, it helps in reducing estate taxes. The beneficiaries will be exempted from big tax hits from the authority. In this case a lawyer is very important since will help in guiding on how the plan should be written. This can be achieved by setting up ABC trust in the plan.
Secondly, an estate plan is useful in preventing messes or feuds. A person cannot wish for cases where the family ends up fighting after they die. It is therefore good to have a comprehensive document that explains every decision that was made. The attorney in this case will provide assistance on how to allocate the assets.
Another advantage of planning is that it helps in protecting individual property. Once the owner of the assets dies the documents will provide guidelines on who will inherit the possessions. The plan allocates everything whether solid or liquid to specified beneficiaries. When this is not done, the court will intervene and helps in making the decision. Failure to do this process, there will be need to go to court which is expensive in terms of expenses and also time.
Also, creating an estate plan helps in protecting minor children. It indicates the person who will be responsible of the kids once the parent dies. This will make one to have easy time knowing that if such an even occurs, the children will be taken care of by a trustworthy person. In cases where a person dies and they had divorced or separated the document will assist in indicating who will take care of the young ones.
Another advantage of this exercise is that it reduces funeral expenses. A person can save money to be used during the period of preparation of their send off when they die. This will ease the burden of burial preparation to the family members.
In addition, the process of planning for the estate helps in making healthcare decisions in future. The attorney will help in describing who should handle any health related problems for the family. The wishes of the person who has died will be accomplished when such scenarios happen.
Lastly, it can be used in determining the total wealth of a person. When writing an estate plan one should indicate the property they own whether individually or joint ownership. It should include investment, cash accounts, real estates and other assets. In case one has debt, it is usually subtracted from the person's net worth.
First, it helps in reducing estate taxes. The beneficiaries will be exempted from big tax hits from the authority. In this case a lawyer is very important since will help in guiding on how the plan should be written. This can be achieved by setting up ABC trust in the plan.
Secondly, an estate plan is useful in preventing messes or feuds. A person cannot wish for cases where the family ends up fighting after they die. It is therefore good to have a comprehensive document that explains every decision that was made. The attorney in this case will provide assistance on how to allocate the assets.
Another advantage of planning is that it helps in protecting individual property. Once the owner of the assets dies the documents will provide guidelines on who will inherit the possessions. The plan allocates everything whether solid or liquid to specified beneficiaries. When this is not done, the court will intervene and helps in making the decision. Failure to do this process, there will be need to go to court which is expensive in terms of expenses and also time.
Also, creating an estate plan helps in protecting minor children. It indicates the person who will be responsible of the kids once the parent dies. This will make one to have easy time knowing that if such an even occurs, the children will be taken care of by a trustworthy person. In cases where a person dies and they had divorced or separated the document will assist in indicating who will take care of the young ones.
Another advantage of this exercise is that it reduces funeral expenses. A person can save money to be used during the period of preparation of their send off when they die. This will ease the burden of burial preparation to the family members.
In addition, the process of planning for the estate helps in making healthcare decisions in future. The attorney will help in describing who should handle any health related problems for the family. The wishes of the person who has died will be accomplished when such scenarios happen.
Lastly, it can be used in determining the total wealth of a person. When writing an estate plan one should indicate the property they own whether individually or joint ownership. It should include investment, cash accounts, real estates and other assets. In case one has debt, it is usually subtracted from the person's net worth.
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