Consider These 11 Reasons To Start Estate Planning
When we’re younger, we tend to focus first on taking care of ourselves, whether it’s personally, professionally or financially. Life changes, and so do our priorities. Sometimes, it’s when we have children; at other times, our responsibilities grow to include our parents or other loved ones.
If you’re at a place in your life where your responsibilities and priorities extend beyond yourself, it’s time to put pen to paper and make your wishes and oral arrangements legally binding through various estate planning documents.
In case you missed last week’s MoneyDo where we covered reasons 1-5, you can check it out HERE. This week, we bring you 6 more reasons to start estate planning for ourselves and our loved ones:
6. Relieve Future Tensions Between Family Members
If you’ve made gifts to some family members that need to be accounted for as advances, or equalized to other family prior to an even distribution of your assets, estate planning is the best way to ensure those obligations are appropriately accounted for after your death. Alternatively, if you want to disinherit certain individuals or treat beneficiaries other than equally, planning makes the process clearer in an effort to avoid disputes.
7. You Poured More Than Money Into Your Business
If you own your own business, it’s critical to consider estate planning that incorporates a business succession plan. Succession plans help to transition ownership and management to the next generation while realizing the value of your life’s work.
8. Preserve The Family Retreat
Families who own vacation property or hunting land should develop an estate plan which transitions the ownership to the next generation smoothly to avoid family disputes; or sells the property to equalize value to members that do not want to inherit the property.
9. Reduce Taxes
If your estate is large, planning is critical to minimize estate taxes and take advantage of various gifting strategies.
10. A Small Estate Needs Planning, Too
If you don’t have sufficient assets or long-term care insurance to cover prolonged long-term care costs, you may need estate planning that incorporates elements of Medicaid planning.
11. Your Life Changes. Your Estate Plan Should Too.
As life expands, so do the number of events that may trigger the need to update your estate plan or to create a plan. Changes in family status (divorce or remarriage), death of any individuals named in your estate plan, and changes to your state of residence are all moments that require recalibration.
Estate planning demonstrates selflessness and care for the people you love. It’s a key part of financial planning, but it’s also an important way to bring peace long after you’re gone. Make sure you focus on them with this week’s MoneyDo.