4 Reasons Why Is Estate Planning So Important in 2022
Seldom does the average American designate efforts to estate planning. We get that chalking out your asset distribution after your death is not as fun as planning a vacation to some tropical island or even planning a date night. However, as our estate planning attorneys like to point out, you must understand that without it you will have no say in deciding who inherits what from the assets that you worked so hard to acquire.
A common misconception states that estate planning is only for the rich but it can be swiftly debunked. Even if you don't have a fancy house or large IRA to pass on, estate planning offers a way to settle your financial affairs posthumously.
Benefits of Estate Planning
1. Protect Your Beneficiaries
Estate planning was once considered only of use to individuals with a high net worth but with time, this line of thinking is now void. Today even moderate to low income families need to create an estate plan in case something happens to the family's breadwinner(s).
Without an estate plan in place, it is up to the courts to determine how your assets will be divvied. And we all know how expensive, unnecessarily lengthy and ugly, court proceedings can become.
2. Protect Young Children
If you are a parent to small children, estate planning provides a way for you to navigate the unthinkable. In case both parents meet an untimely death, the children must have a guardian to look after them until they turn 18. If you fail to name a legal guardian the courts will step in and there is no saying if it would be in the best interest of the kids.
3. Spare Heirs a Tax Bite
Transferring your assets to the heirs without the smallest possible tax burden is a critical part of estate planning. In addition to guaranteeing protection against the Internal Revenue Service, estate planning can reduce federal and state estates taxes, inheritance taxes and even the income tax.
In the absence of a solid plan, beneficiaries might end up owning Uncle Sam a lot of money.
5. Eliminate Family Squabbles
It is not uncommon at all to hear of family members pitting themselves against each other to gain control over the assets left behind by the deceased. One may think they are more deserving of the inheritance while another may consider themselves the fittest to take charge of finances.
Estate planning attorneys can assure that In the event of your mental incapacitation or death, your assets are handled the way you originally intended. This also helps quell family wars.
20 Years of Quality Legal Representation
Reneau Law Group, Oklahoma City provides its clients with well experienced estate planning attorneys, among others at reasonable service charges. We currently serve the OKC greater metro area. Get in touch with via the contact details listed on our website.
**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.