Why Is Estate Planning Important?

Estate Planning Lawyer

Why Is Estate Planning Important?

When we hear about people we knew passing away or even influential/famous people who we followed closely, there is always that question: What happens now? How did they decide they wanted their money distributed? Who gets what? The distribution of wealth is such a complex subject that depends entirely on each unique individual. Many people always think everything they have will just go to their families, such as children, spouses, and grandchildren but that does not necessarily have to be the case if you don’t want it to be. The planning of allocating your wealth in a specific manner, and determining what occurs with your worldly belongings and assets in preparation for your passing is known as estate planning.

What Is Estate Planning?

The literal definition of estate planning is defined as the process of anticipating and arranging for the management and disposal of a person’s estate during the course of their life for a person’s future incapacity or death. Estate planning might be the most important thing you could do to protect your loved ones in the event of death or incapacitation. Death is a common occurrence in our lives, and we have all had our experiences of loved ones passing away. Through estate planning, you get the sense of security knowing if you are incapacitated or pass away, your family will be taken care of. 

The Importance Of Estate Planning

With estate planning, you decide who gets what and who will receive your medical and financial power of attorney, if for any reason you reach a point where you are unable to make those decisions in the future. A lawyer, like an estate planning lawyer, knows that without an estate plan, your loved ones are more likely to go through legal proceedings and deal with the state laws deciding who and how your assets are split up. If you have kids under the age of 18 years old, the court will have to decide who gets custody of your children. Through the means of an estate plan you get the chance to name guardians for your children and your heirs will pay less in taxes, fees, and court costs. 

What You Need To Begin Estate Planning

When looking at the process of how to create your estate plan, it is important to know this process is all about preparation and identifying what you want to leave your family and friends with. The first step in the planning process is to create a last will and testament. This is where you will set forth how you want your assets to be distributed after you die and who would receive guardianship of your children. You will also have the choice to create your living will which is used to define your wishes should you want extreme measures to be taken if you’re terminally ill. 

During the estate planning process, you will appoint a medical power of attorney, an individual who will be making decisions about your medical care on your behalf, as well as a financial power of attorney, who will make and carry out financial decisions on your behalf. Another way to ensure your family is well taken care of after your passing is through life insurance, while estate planning you have the choice to add in your life insurance which can be used to help pay for funeral costs, mortgages, or rent, and help replace loss of income. Many life insurance policies, 401(k) plans, and IRAs allow you to name beneficiaries which helps avoid probate after your passing and allows your loved one to receive access to the funds directly. 

Finding Estate Planning Help

Our friends at Brandy Austin Law Firm can tell you that estate planning ensures your family does not have to go through any additional emotional and mental stress after dealing with a loss. We understand there is not a price tag on tranquility and there is no such thing as over-preparedness when it comes to family. When you are ready, speak with a lawyer about your estate planning needs.