In layman terms, estate planning is the simple practice of setting up a system delineating your monetary and proprietary holdings for inheritors in the event of your passing. It is a practical way of ensuring that all your assets are lined up properly and clearly so that your loved ones will be spared any confusion or drama after your passing. Perhaps the term sounds a bit intimidating, but it is a fairly accessible mode of operation in terms of handling your finances, provided that you find the appropriate legal support. The following is a simple primer to help clear up a few misconceptions.
It’s Not Just for the Mega-Rich
What do you imagine when you first hear the term “estate planning”? Is it a gigantic eight million dollar mansion and hundreds of acres of land? While people who own that much are, of course, in the market for a good estate plan, that does not mean they are the only ones whose financial assets need to be watched over. If you are a homeowner and possess a sizable savings account, then that is more than enough to encourage you to look into getting a professional to help partition your estate and ensure that your loved ones will receive what you have planned for them in the event of your passing.
More Than a Will
A will is a part of the estate planning process, but it does not represent the work in its entirety. Through excellent and professional planning, you will receive the proper guidance in divvying up your assets, and will have all the legalities in place in case of an emergency. While a will is an important document, in reality, it serves as only one piece of the puzzle. If you’re curious to learn more about the differences, click here for more information on how different sets of documentation can best protect you and your family. Getting a consultation might help to make things clearer, and it always helps to research first and know your rights.
Peace of Mind
Getting an estate plan will lift a huge burden off your shoulders. If you are dealing with a life-threatening illness, or fear that an accident might rip you away from your loved ones, the only peace you might find is knowing that you have been able to take care of your family. So, it truly does not matter if you have assets in the millions, or are a modest property owner: it will save you and your family years of worry and spare them the pain of severe financial strain. Especially if you are the primary breadwinner and worry that you may not be providing your family with a sturdy safety net.
Family Drama
You know all those books and movies about rich, squabbling siblings pettily fighting over the inheritance left to them by their guardians? Well, those stories have become a cliche for a reason. Without setting up an estate plan that includes both a will and trust, it is very likely that the lingering confusion over who gets what can turn into pandemonium amongst the beneficiaries. As hard as it is to acknowledge, but nothing causes more pain and heated drama amongst siblings than money. Planning out your estate and securing all your finances for the family is a surefire way of avoiding this level of torment and public humiliation after your passing.
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Taking Care of Vulnerable Family Members
If you have a child or another family member who is in a particularly vulnerable position–say, he or she is disabled either physically or mentally–then you will want to be sure that you are keeping their best interests at heart in case something happens. Unfortunately, there are many who would like to prey on others given the opportunity, and if the trusted guardian passes, vultures suddenly appear to steal what is not theirs. An estate plan allows you to safeguard the trust for your loved ones, especially those who are vulnerable to various forms of manipulation or outright inheritance theft. You can choose the person whom you would like to receive money on their behalf, or devise a solid system through your legal team that wouldn’t allow room for any grey areas.
Death is that terrible elephant in the room that everyone would prefer to pretend that it does not exist. But, avoidance is the enemy of practicality, and sometimes it is worth staring down your mortality in the interest of protecting your family. It might seem difficult at first, but through proper planning, research, and with the assistance of a good lawyer, you will have saved your family a lot of heartache and needless worry down the line.
