Estate Planning: Why It Is Important
Just like saving, among other plans we deem important in life, estate planning is critical. Contrary to what most people think, you don’t have to be extremely wealthy to do estate planning. It is all about ensuring that every member of your family gets something from your estate and protects them from overpaying taxes.
Here are the reasons why working with an Estate Planning Attorney RI to plan your estate is important.
- You get to choose who gets what
Estate planning gives you an opportunity to decide who gets what. Without planning, this will not be within your control, and in your absence, the court gets to make the decision. Worth noting is that the court process is not easy and could be stressful for your family.
Most of the time, it takes years before the decision is made, and the estate may not benefit your heirs the way you had expected. Things also turn ugly as some family members may feel that their share is unfair. However, if you are the one to plan your estate, your word will be final, and they will be happy with your decision.
- Protection from Internal Revenue Service (IRS)
Estate planning is mostly geared at protecting your loved ones, and part of the protection is from a tax bite. As part of the estate planning process, the property owner also keeps an eye on the ways he or she will reduce the tax burden on the heirs during the transfer. Without a plan, the heirs will be subject to a full swing of federal taxes, inheritance taxes, state taxes, and even income taxes.
By working with an estate planning attorney, you will be guided through ways to reduce the taxes or even remove all the taxes.
- Avoiding probate
If you do not do estate planning, the chance is high that your property will go to probate. This process involves the court authenticating your will and evaluating the value of your assets. From there, the court then pays off outstanding debt, bills, and taxes. What remains after everything has been said and done is what is distributed among your family members.
This process should be avoided because it can get costly and take a lot of time before it is completed. As a result, this becomes very stressful for your family.
- Avoiding conflict
Family messes and fights over assets left behind by a loved one is nothing new. This usually happens when there is no estate plan in place, and it is not something that you would want your family to go through, especially after losing a loved one.
Planning will ensure that your estate is handled as your wish and all the conflict is avoided.
Take away
Estate planning helps in avoiding problems that could cripple family relationships. As you make plans for your future, this is something that you should also give thought to. This will spare your family from tax burdens, conflict, and tedious court processes.
