Is Estate Planning Only For Asset Distribution?
- Posted on: Jan 25 2021
Estate planning is extremely important when it comes to asset distribution. It serves as a great way to be sure that your assets are properly given to the correct recipients upon your passing. In doing so it also helps to make sure that your loved ones are cared for.
Why It’s Important to Have an Estate Plan
If you die without a Will (known as “intestate,”) the laws of the state will govern who receives what. And while you may think that the individuals who would receive your assets under intestacy laws are the same ones you would choose anyway, the percentage of distribution won’t necessarily align with your wishes.
Therefore it’s a good idea to have a comprehensive estate plan. However, asset distribution isn’t the only reason for estate planning. Here are some other important reasons.
You can avoid probate.
A big reason for executing an estate plan is to avoid the probate process. Probate, which is a legal process for distributing your assets upon your death, is generally not beneficial in many ways.
Probate can take a long time with fees usually equaling approximately 3-5% of your estate. Additionally, the process can be extremely lengthy, usually taking at least 12 months to finish. That timeline is now likely even longer due to the courts being behind due to COVID-19.
You can choose who you want to oversee everything.
When you create an estate plan you can select who you want to oversee your estate and be in control of everything. The person whom you select will be responsible for whatever you have laid out in your Will, Trust, and other documents to your estate plan. That’s why this should always be someone whom you trust.
You can choose who you want to raise your kids in your absence.
Estate plans are also very important for those who have young children. This is because you have the ability to choose a guardian to raise them if you should pass away prematurely. You have the opportunity to consider who would be the best fit on multiple levels: values, religion, lifestyle, age, living conditions, other children, etc.
You can avoid paying certain taxes and can protect certain people.
An estate plan can also help those with larger estates to avoid estate and income taxes should you take advantage of the opportunity. Additionally, if you would like to leave your assets to someone but you find that they are financially irresponsible, you can set up your estate plan to prevent them from misusing assets, while still being able to provide for them.
The Law Offices of Brian L. Fox, APLC Help Those in VA to Create a Comprehensive Estate Plan
We all have different reasons as to why an estate plan can be beneficial. However, the commonality is that an estate plan is beneficial to each of us. That’s why it’s so important to have one. If you are in need of a comprehensive estate plan, a knowledgeable and experienced Santa Barbara Estate Planning Attorney can help.
At the Law Offices of Brian L. Fox, APLC, we know how important it is to protect what – and whom – you care about. We will help you to create a comprehensive estate plan that meets your needs and keeps you and your loved ones protected. To learn more or to schedule a free consultation, contact us today!
Posted in: Estate Planning