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The Essential Laws of Planning Explained

Why Estate Planning is Very Important Many people are likely to spend more time planning a trip or dinner out of home than they’ll do planning who’ll get their estate. Yes, estate planning may not be as enjoyable as checking hotel reviews or booking a vacation, but without it, it’s not possible to decide who receives all you’ve really worked hard for. Estate planning isn’t for rich people only. Without estate planning, your family might be affected long-term, even if you’ve got no expensive home, valuable art piece, or huge investment account to bequeath. If you aren’t convinced that estate planning is important, here are four reasons why it’s very important to plan your estate before you pass on. Prevents unintended beneficiaries getting your assets
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Estate planning is vital for the rich as well as middle class people. After all, you need not be extremely rich to prosper in the real estate or stock market fields, both of which generate assets you’ll want to hand down to your inheritors. Even if you’ve only got a second home to leave behind, if you don’t pick who gets it when you pass on, you won’t have any say as to who gets the property.
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Protects families with young kids If you have little kids, you need to prepare for any eventuality. To make sure your children are looked after how you want it, be sure to name their guardians in case both of you die before the kids are 18. If not, the courts will take over and decide who will take care of your children, rather than who’ll get your piece of art or part of your real estate. Stops inheritors overpaying taxes Estate planning is really about looking after your loved ones, which means somewhat protecting them from heavy tax hits. Transferring assets to your inheritors with the intention of having the lightest possible tax burden is key to estate planning. Even with a little estate planning, parents can reduce all their state inheritance taxes, or state and federal estate taxes, which can be very costly. But if you have no plan, your inheritors will owe the government lots of money. Stops family squabbles after your passing We’ve all heard about family wrangles that take place when somebody with money passes on. This wrangling can turn ugly and wind up in the courts, with relatives taking on each other. This is one more reason why it is imperative to draw up an estate plan. This will allow you to pick who controls your assets or finances if you get mentally incapacitated or when you pass on. It’ll also help a lot in quelling any family conflict and making sure that your estate is handled in the manner that you want.