5 Reasons Why You Should Not Delay Estate Planning
Avoid Delay in Estate Planning
You may not be rich, but you should decide how your property and money will be distributed among the people you love, after your death. If you own a home and have children, it’s time to create an estate plan to make sure your assets are doled out among the people mentioned by you in the legal document.
The most common mistake some people make is that they don’t create an estate plan. They think that they are too young to die and there is enough time left to create a will. Unfortunately, if you die due to an unforeseen accident, your family members will fight with each other to decide who gets what.
If you still think that estate planning is not an urgent matter, let me point out the reasons for it so that you can realize its importance.
# Helps you avoid probate: Probate is the court supervised way of identifying the properties of a deceased person, evaluating the total value of the property, paying his/her taxes or bills (if any) and then distributing whatever is left among the heirs. Most people are afraid of probate, because when a deceased person’s property is distributed by the court, often the rightful heirs don’t get their fair share.
For example, if you have 1 son and 1 daughter, you may want to give the lion’s share of the property to the son, but if you die without any will, the son will never get what you wanted him to give. However, when you have a written estate plan, the property gets distributed exactly as mentioned by you in the will.
# Decreasing estate taxes: Married couples can easily reduce estate taxes by setting up AB or ABC Trusts as part of their will. Additionally, both married couples and unmarried persons can utilize various estate planning techniques to make the inheritance tax amount less burdensome.
# You can avoid legal feuds: By creating an estate plan, you can determine the best possible way to distribute your property. You can decide who will get what and when they will get it. Thus, the possibility of any legal battle between your family members can be avoided.
However, estate planning is not just for distribution of real estate and money among family members. Suppose, you support a charitable organization and want to donate your house to them after your death. In that case, estate planning is absolutely essential so that your heirs don’t contest the right of the charitable organization.
# Protect beneficiaries: This is one of the most crucial reasons for writing an estate plan as early as possible. Depending on the circumstances, you may need to protect two types of beneficiaries- minor and adult. If your child is aged below 18 years, you can decide a guardian for him, who will look after his needs and finances till he becomes an adult. Once he reaches adulthood, the property will be handed over to him.
On the other hand, if the beneficiary is already an adult, but not intelligent enough to manage the property and money or if you think that his or her partner will snatch the belongings by getting a divorce, then with the help of a solicitor, you can create an estate plan that will save the beneficiary from his poor decisions.
# Make sure that creditors don’t seize your property: Do you want your wife to live a life of poverty after your death? By creating an estate plan, you can determine the right of the beneficiary. For example, you can mention that your only son and wife are the only two owners of your house and land, but the son can never use the house to collect loan from any financial organization. Even if your son takes a loan by offering something else as guarantee and fails to repay the money, the house will not be seized by the creditors.
Estate planning is a very serious matter and you must take professional help to write down the legal document. Therefore, you should get in touch with a law firm and consult with their lawyers to get the right advice. There are plenty of law firms in Newcastle area. All you need to do is contact the one that has the best experience in estate planning.