Do you feel like you’re one step behind in estate planning? You’re not alone. The average American doesn’t plan to die until they are almost 80 years old. While this may seem like a good idea on paper, it can have disastrous consequences when you actually die. Here are 6 reasons why you should start making your wishes clear now:
- You may not be able to do anything about the situation if you wait.
- It will cost more money in the long run.
In this article, we are going to look at some issues that come from delaying the creation of a proper (and legal) estate planning set of documents. As well, we’ll cover a few myths that you need to avoid.
Reasons to plan your estate
When it comes to estate planning, many people think that they do not need to do anything until they are much older. However, there are many reasons why it is important to start estate planning as soon as possible. One of the most important reasons is that it can help ensure that your wishes are carried out after you die. If you do not have an estate plan in place, the courts will decide how your assets are divided and who will care for your children.
Another reason to plan your estate is that it can help reduce taxes. If you die without a will, the state will determine how your assets are distributed and this may not be in accordance with your wishes. Furthermore, if you die with a lot of assets, the taxes on those assets can be very high.
If you do not plan your estate, there are many other issues that can arise. This could include a court battle over who gets to inherit your assets and how they will be divided.
Tax savings with proper estate planning
One of the smartest things you can do for your financial future is to plan your estate properly. A well-executed estate plan can save you and your loved ones money on taxes. Here are a few tips to help you get started:
- Make a will. This is the first step in any estate plan. A will allows you to specify who will inherit your property and how it will be distributed. If you die without a will, the state will decide how to distribute your property, and this may not be what you would have wanted.
- Create a trust. A trust can be a great way to reduce the amount of taxes that your heirs have to pay on your estate. Trusts also allow you to control how your property is distributed after you die.
- Choose the right type of account.
Avoiding family conflict with the right estate planning and asset protection plan!
Conflict within families is often the result of disagreements over money and assets. When these disputes arise, they can cause irreparable damage to relationships. However, by taking steps to protect your assets through estate planning and asset protection, you can help ensure that these conflicts are avoided.
One of the most important things you can do to protect your assets is to create a comprehensive estate plan. This will ensure that your wishes are carried out after your death, and will help to avoid disputes between family members. You should also take steps to protect your assets from creditors and lawsuits by setting up a trust.
By doing so, you can rest assured that your loved ones will not have to deal with any messy legal battles after your death.
Estate planning means protecting your assets
Estate planning is the process of arranging for the management and disposition of your assets in the event of death. It can also include arrangements for disability or incapacity. The goal of estate planning is to ensure that your assets are managed and distributed in a way that is consistent with your wishes and best interests.
There are a number of different tools and strategies you can use in estate planning, including wills, trusts, powers of attorney, and living wills. Each one has its own benefits and drawbacks, so it’s important to consult with an experienced estate planner to find the right solution for you.
One of the most important things to remember about estate planning is that it’s not just for wealthy people. Even if you don’t have a lot of money, you can still benefit from having a solid estate plan in place.
Providing for your loved ones, after you die
The sooner you make your wishes clear, the less expensive it will be to carry out estate planning.
I’m sure you are wondering, “Just, how much?”
According to The Wall Street Journal, people who wait until their deaths to make their wishes known can end up spending an extra $10,000-$15,000 on estate planning.
In addition, heirs may not get the inheritance they were hoping for if the person who died didn’t have any specific instructions in place about what should happen to their money and property.
Plus, when you figure in probate costs (2%-7% on average) and the time (it can take on average 6 months for money to clear), the real costs can start to add up for your loved ones.
Bottom Line: What is the average cost to you and your family in not having proper estate planning made?
When it comes to estate planning, the sooner you make your wishes known, the less expensive it will be. The cost of delaying estate planning can add up quickly and can have serious consequences on your loved ones if not planned for correctly.
So, how much on average, can you expect to lose in your assets and estate after you die without a well-documented, clear and legal estate planning set of documents?
For the average American, this number is anywhere from $20,000 if you have $150,000 of assets or less, up to a loss of $50,000 or more for people with $500,000 of assets or greater.
Make sure you are clear with your wishes so that you and those you love don’t have to deal with any unpleasant surprises down the road. Go to a professional.
Beacon Estate Planning And Elder Law LLC is ready to listen to your needs and help you build the right solution for your estate planning needs. Give us a call at (724)60-ELDER today, or visit our contact page to claim your free consultation.