Many people believe that estate planning is only for the rich. This couldn’t be further from the truth. Without an estate plan in place, settling your affairs after you are gone could have a costly impact on your loved ones—regardless of your income or assets. In this article, we discuss four reasons that you need an estate plan.
Estate Planning Protects Beneficiaries
An estate plan can protect beneficiaries in a number of ways, including making arrangements for what will happen if something happens to you. In addition, through estate planning, you can leave assets, such as real estate or investment accounts, to beneficiaries without the involvement of the probate court. In fact, avoidance of probate is one of the primary benefits of estate planning. Without an estate plan in place, the probate court will decide who gets your assets. In addition, probate is costly and can take years to wrap up.
Estate Planning Protects Young Children
Although nobody wants to think about passing away young, it’s something that you must consider if you have children under the age of 18. With an estate plan, you can ensure that your children are cared for in a manner that is acceptable to you. Importantly, an estate plan allows you to name guardians for your children in the event that you pass away before they turn 18. Without an estate plan in place, however, the courts will decide who will raise your children.
Estate Planning Has Tax Benefits
Another reason you need an estate plan is to provide them with protection from the Internal Revenue Service. Estate planning allows you to transfer your assets to beneficiaries while creating the smallest tax burden possible, which can include reducing much or even all federal and state estate taxes and state inheritance taxes. Without a plan in place, however, the amount that your heirs will owe could be quite substantial.
Estate Planning Prevents Family Squabbles
Finally, estate planning can stop family fights before they have a chance to start. By making certain decisions during the estate planning process, you eliminate the possibility that your family members will squabble over your assets after your passing. In addition, an estate plan allows you to decide who will control your finances and assets should you become mentally incapacitated, thereby taking this decision out of the hands of your family and the court.
Contact a Michigan Estate Planning Attorney
If you are ready to draft an estate plan, you need an experienced Michigan estate planning attorney in your corner. At Keating Law, PLC, attorney Thomas Keating will help you create an effective estate plan that addresses your family’s unique needs. With over 25 years of estate planning experience, Thomas Keating understands what it takes to draft an estate plan that will protect you and your loved ones for years to come. Please contact us today to arrange a free consultation.