A question that pops up inside every adult’s mind is, “Do I need an estate plan?” A study reported that more than 76% of adults in the US think having a will is good, but only 46% of adults have one. So you can see many people are still avoiding estate planning even though they know the benefits it brings. However, if you are confused about having an estate plan for yourself, then we will try to explain why you need it. First, you need to forget the myth, “Estate planning is only for rich people,” because it isn’t.
We have seen a report suggesting that young people or millennials are being attracted to estate planning, which is good. Well, the new generation understands the importance and benefits of estate planning. Still, we have far to go because some people still think that estate planning isn’t their cup of tea. People with modest assets are more likely not to be interested in estate planning because they believe they don’t have much to plan for. We see it as everyone working long and hard to have achieved what they have up to date, be it a $50,000 in savings or a house worth $5,000,000. Why not safeguard what you have.
Do I need an estate plan?
Yes! You do, and everyone who has ever been concerned about their family, spouse, children, business, and loved ones should consider having an estate plan. So, you should stop thinking about planning and go ahead and take a free consultation with a specialist. We have seen a report that says that many Americans have misconceptions about estate planning. Some people think that it is only for the rich, some believe that it is only for the old, some claim that as they don’t own much, they don’t need planning, etc.
We respect your opinion and understand that you aren’t aware of estate planning benefits. So, we will simply brief you on some positive benefits of having estate planning. Afterward, you can decide wheatear or not you want to have an estate plan. Check out the estate planning benefits below:
Estate planning benefits
Helpful in reducing taxes:
It doesn’t matter if you are a multimillionaire or a local electrician because everyone pays taxes. However, you must know that having estate planning can help you in reducing or even avoiding having to pay state inheritance taxes.
Secure your family:
Your estate is the only thing that will be left behind for your loved ones. We don’t think that anybody would want to see their family members getting tensed because of the delay in getting your estate in their hands. After all, you’ve worked all your life and now when you are gone your hard work is the only thing left for your family. By having an estate plan, you can easily designate a beneficiary and even set up a trust to help them avoid the probate process.
Estate planning can help you if you want to protect your business. You must know that any business can suffer after the death of its owner. It is important to consider your successor not only your beneficiary in some cases, but not the same person, and add this structure into your wishes within your estate plan. At times if you have multiple children and some work in the business while others know nothing about day-to-day operations it might be best to leave the business to the operating child and a life insurance policy to the other. Planning for business succession within your estate plan is important.
Healthcare Proxy and Power of Attorney:
As humans, we can get sick at any time, so it is best to plan for such an occasion by setting up a Healthcare Proxy and a Durable Power of Attorney appointing someone to make both medical and financial decisions on your behalf in the event that you are unable to do it for yourself. It is important to be cautious when picking one’s power of attorney and assigning someone to be your healthcare proxy because that person can make some serious decisions regarding your finances and wellbeing when you aren’t able to for yourself.
Estate planning is harmless and comes with lots of benefits. Estate planning can provide your family with an extra layer of protection safeguarding them from creditors and predators which can prove quite useful in the near future We know that a lot of you have heard about planning your estate before but we highly recommend you take action now.
It isn’t simple to make an estate plan and will have lots of questions and concerns, but we believe that our expert estate planning attorneys can help Overall, if you’re considering planning your estate then congratulations on Planning for the future and taking control of it to the best of your ability is a great idea If you ever wondered how estate planning works or where to begin to call us to set up a free consultation Estate planning can do more than just safeguard your assets for future generations, with estate planning you can decide how your estate takes care of you in the event that you are alive and unable to take care of yourself.
It doesn’t matter if you are planning to get married, a newly married couple or have been married for years. It would help if you had an estate plan. You need to understand that things change when you get married, and you need to be a bit more careful now. Marriage is a huge responsibility, and we know that every person wants only the best for their spouse. If you are newly married, you must understand that estate planning will give you a lot of benefits from the start. Also, the couples who have been married for years should enroll themselves in estate planning.
First of all, forget the old misconception that you don’t need an estate plan as you are just getting started. You must know that everybody needs an estate plan, especially now that you are responsible not only for yourself. Humans can get injured or die at any age and time. We don’t control all life situations, like car accidents or incidental death, so it’s better to have an estate plan to secure our spouse/children. We know that most young people put off estate planning because they think it is for old folk. It’s good to stay prepared for the worst-case scenario.
Estate Planning for Married Couples
You must know that estate planning for married couples comes with many benefits and powers. Also, it gives the freedom to the team to decide how they want to use or even hand over their estate. In addition, estate planning also helps you plan your retirement and medical care services. Here, we will talk about some significant importance of planning your estate with your partner.
Secure your spouse’s future
We think that planning an estate can secure your spouse’s future or, at the minimum, simplify it while they grieve and take care of pressing affairs. In addition, a good estate plan can help avoid probate, mitigate taxes or even help make burial decisions.
Protection from a third-party claim
An estate plan can help protect your spouse from a potential third-party claim. Neither you nor your estate planning attorney can predict your beneficiary’s personal or financial situation when the time comes. Seeing that assets don’t pass outright to them but instead pass into trust for their benefit at times can be the difference between them receiving money or not.
Planning your estate now while the current gift tax exemption is at an all-time high can potentially save your spouse a lot of taxes.
Must-Have estate planning documents for a married couple
If one of you becomes ill and unable to make your own medical decision, a hospital or medical facility might require a Healthcare Proxy to speak with your spouse. As a result, married couples usually become each other’s Healthcare Proxies.
Power of attorney
A power of attorney means that if something happens to you or you aren’t in a condition to make financial decisions, then someone else like your spouse can make those decisions for you. For example, you are the breadwinner in the family, yet you end up in a coma due to a car accident. Your spouse may need to access bank accounts to pay rent or mortgage or even may need to sell a property to sustain during this time. Most married couples name each other as one another’s Power of Attorney, followed by a grown child or close relative they trust.
A Will is part of essential planning. It is one of the first estate planning documents that new couples tend to set up. A will can discuss basic wishes as per assets and what happens to them when you are no longer around and designate guardians for minor children.
A living Will
Yes! It is essential to have a living. Some decisions can be difficult for a spouse or child to take upon themselves. If you don’t wish to have resuscitation or tube feeding, if god forbid that time arises, you want to make that decision for yourself and not leave it to your loved ones.
A simple step where you leave some instructions/wishes and advice as per your funeral so your partner can take care of it as you wish.
Hopefully, you and your spouse will go through every document carefully a will or estate plan should be clear. Without an estate plan, you must understand that your partner can suffer having to go through probate while mourning or being forced into difficult medical decisions that no one should have to make for a loved one. Therefore, we think for the sake of peace of mind, every married couple should have an estate plan.
You must know that life insurance policies and other insurance policies don’t always have to be in your will. You may contact your insurance policy provider to add a nominee name. We believe that planning is you reaching into the future and taking charge. Regardless of how you plan and the length you take, planning even for the smallest of events is always better than pretending that it can’t or won’t happen to you.
To sum it all up, planning, especially for a married couple, is essential. If you love your spouse, show it by thinking of their future. Help safeguard them from headaches such as medical decisions or probate. Protect your assets from creditors and predators. Preserve your wealth, small or large, for the benefit of your loved one. Seek guidance from an experienced estate planning lawyer, cross your T’s and dot your I’s as your loved one’s matter.
Estate planning is a good choice if you own a business and are worried about its future. Many people have been thinking about estate planning for a long time, but they haven’t jumped on it. There is no rush, but you must plan your estate if you own a business and want its future security. Also, an estate plan comes with many benefits for a business owner, so if you are a business owner, it can be helpful for you. We strongly advise all the business owners to go with estate planning for your business as it is essential.
You have spent your whole life building a business, and you wouldn’t want it to vanish after your death, right? Yes! Your business can be harmed without an estate plan because now you aren’t here to run it. In this case, whoever will be in charge will drive your business as they want. Estate planning can give you the power to manage the future decisions of your business. Also, it can save you from many tax implications, and you get the benefit of picking the proper beneficiary or person who will take over in your place. Estate Planning can be advantageous to any business or company.
Estate Planning for Business
It doesn’t matter if you have a small business or the most prominent company out there; estate planning can give you peace of mind and a shield to protect your assets. Anybody who owns a business can easily benefit from estate planning. Unfortunately, many small business owners think it is expensive for their business and keep pushing it away. A study has confirmed that more than 30% of business owners don’t have an estate plan. A business estate plan means covering your business-related issues according to your wishes.
Benefits of Estate Planning for Business
- Options for business – Having good estate planning can make a lot of a difference. For example, have you ever considered setting up a buy-sell agreement and taking out a buy-sell insurance policy? If you have partners in your business, can you imagine inheriting one of their family members as a partner, especially one that knows nothing about your business? This form of planning can be helpful, especially once your business partner is no longer around. This will allow an insurance policy to buy out your partner’s shares, paying their family at death, leaving you their claims in the business.
- Suitable for long-term business – You had an idea, a dream, and today, you own a major corporation that is super profitable. Having a good estate plan means covering the basis of who can make business and financial decisions if you’re ill or mentally incapacitated. A good estate planning attorney will consider all future scenarios and include a Durable Power of Attorney into your planning for insurance. Then, while you are in the right state of mind, you choose who will run your affairs if one day you’re not able to. They will also potentially set up trusts to create a layer of asset protection and a vehicle for the pass-through of assets to the next generation.
- Suitable for tax mitigation – You built a business, got it to be profitable, and now you wish to safeguard this asset for your children and grandchildren. Your business is part of your estate, and a liquidity event occurs at the time of death. A good estate planning attorney will account for this and create a legal structure to minimize your tax exposure.
- Good future planning for business – Estate planning does give you the power to choose a business plan for the future. You can pick the person who will run your business, how you wish them to operate, and even mandate a holiday party in your honor once a year if you want to do so. You can create strategies that the company must follow and even dictate benefits for family and co-workers. This doesn’t mean that you should, as none of us have a crystal ball and can see into the future. Good planning should leave room or flexibility for adjusting to current times, but it’s nice to know you can control some aspects of your business even when you’re no longer around.
- Business Succession – People may try to take advantage of the moment for personal gain after your death. You may find you’re your spouse and children fighting over assets and businesses. Avoid this and take control; create an estate plan dividing and giving assets as you see fit to those that matter to you most. Perhaps you have a business you want to leave to one child and an insurance policy to the other. Maybe you have a vacation home that you wish to be sold and profits evenly distributed to your kids. Take control, come up with a plan and have an estate planning attorney write it.
Estate planning is for everyone. If you have a mom-and-pop liquor store or a chain of restaurants, you and your loved ones can benefit from estate planning. Estate planning can be as simple as who runs my business if I’m ill to as complicated as selling assets and distributing money after I’m gone. It can be as simple as leaving everything in equal shares to your children to as complex as reinvestments of assets and controlled distributions based on specific life accomplishments of your children. For example, you wish your estate to distribute the money necessary to cover a wedding or down payment for the first house but not to pay for a two-week vacation.
In the end, we have told you the benefits and importance of estate planning for a business. We are here to guide you with all types of estate planning queries. You can contact us to set up a free consultation with one of our experienced lawyers who can help you create a custom-tailored plan. Sometimes planning an estate can be a little tricky. We are here to help.
Estate planning can be tricky, but we believe that it can be simplified with the guidance of an experienced estate planning lawyer. We provide free consultations, and we can help you plan your estate. Planning your estate and planning sooner than later is essential. Unfortunately, life does not come with a crystal ball predicting what tomorrow brings. However, being prepared and papered up for tomorrow has its benefits.
As you might already know, estate planning is all about securing your assets for the future of your kids and the family. You have worked long and hard and now amassed some possessions, but what if you die? One of life’s few guarantees is that one day we will die, and there is no running away from it. So who will inherit our belongings? Will it be your spouse, children, family member, or close friend, or will you leave everything to a charity? The choice is yours but only through proper estate planning.
What does an Estate Plan Include?
An estate plan can include many elements, and you must know to learn more about them. It is essential to be educated on the subject before stepping moving forward with creating your estate plan. So, here in this blog, we will talk about the things which an estate plan may include.
Estate planning Components
Many of us imagine a Will/trust related to a person who is dying. Some also believe that a Will/Trust is only for the wealthy or those with much real estate. However, having a Will/trust means that you wish to protect your belongings and safeguard them for the person or organization of your choosing to inherit them when you are no longer around.
Power of Attorney
Let’s say you are running a small or even big company and something happens to you in which you cannot run a business; then what’s next? Who is going to handle your business? In that case, you will need to have someone with a “Power of Attorney.” You can pick that person you will empower to handle your finances in such an event.
If you wish to decide who stands to inherit your belongings, you must appoint a beneficiary during your estate planning. Each state has its own set of laws. If you don’t nominate a beneficiary, the courts will appoint them based on state law.
Letter of Intent
It is essential to have a letter of intent because it can contain the wishes that you want to tell your beneficiary. You must know that the purpose of this letter is to tell your beneficiary about your plans regarding your asset or any other instructions such as where you are to be buried.
It is simply like a power of attorney but with only limited control. You can see that the “Health” word is attached to it, which means that the person who will be your Healthcare proxy will decide your health-related decisions when you cannot make that kind of decision by yourself.
You must know that guardianship is an essential element of estate planning. It comes in handy when you want to pick someone to be your kids’ guardian after your death. If you don’t like any, then the court will choose for you, and that person could be anyone from your family, even potentially a family member you don’t even trust.
A living Will
It is one of the essential components of estate planning. But, first, you must know that “A Living Will” comes in handy if you want to take care of yourself even when you cannot do it. It does help in many scenarios, and one of them is like falling into a coma when you aren’t able to make your decision then “A Living Will” dictates your wishes of how you wish to have cared.
In the end, planning allows you to make decisions about your future and, at times, that of your loved ones. Therefore, having a plan is essential. When you are ready, our firm offers free consultations; come in and learn more about how you and your family can benefit from a good estate plan. Call us today to schedule your free consultation with one of our experienced attorneys.
When people talk about “Estate Planning,” they often think that it is only for the wealthy. We believe that most people live with the misconception that they don’t have much, so they don’t need a will or estate planning. What you have might not be much to you but maybe a lot to someone else. You have worked long and hard for your possessions; whether it be a car, co-op apartment, or portfolio of skyscrapers, these are your assets, and you should have a say in who gets them.
Rich or poor, we all are going to die someday, and nobody will take their estate with them. Now, would you want the courts based on state law, to decide who will own your house, car, furniture, and other investment after your death? We think most believe in having a say! We believe that a proper estate plan can give you such voice while making a pass-through of assets a less complicated process for your loved ones. Also, keep in mind estate planning isn’t just about planning for death. It is also about planning for life, and this part of estate planning most forget about or ignore.
I’m not rich. Do I still need estate planning?
Yes! The biggest misconception about estate planning revolves around people who have accumulated significant wealth or lots of assets. We like to start with the basics when we speak to our clients about estate planning. For example, do you have children under the age of 18? If the answer is yes, then you need estate planning. What will happen to your minor children if you and your spouse are no longer around? Who will take care of your underage children? By creating a Will, you can designate a legal guardian for your minor children who will be responsible for their upbringing and welfare if you are no longer around. Don’t you want to say who that person will be?
Rich or poor be it a savings account with 20,000 dollars in it or three brownstones that you own, planning for life is essential. Estate planning is not just about passing on assets to the next generation but also about who will be able to make medical or financial decisions on your behalf if you cannot do it for yourself? In a good estate plan, there is a healthcare proxy that allows the person of your picking to make medical decisions on your behalf and a durable power of attorney that allows a person to make financial decisions on your behalf. If you start to suffer from dementia one day, don’t you think having these documents in place will be helpful?
If I am not wealthy, what are the benefits of having an estate plan?
We know that this question mentioned above crosses many people’s minds. Many people say that they aren’t wealthy, don’t have any estate, and don’t have any property, so why do they need estate planning? You must understand that planning for the future is essential. There are many unforeseen circumstances in life; hopefully, with a good estate plan, you will be able to cover and plan for some of them.
- By creating a Will, you can appoint a legal guardian of your choice for your minor children,
- By creating a healthcare proxy, you can empower someone you trust to make medical choices on your behalf in the event you are in a car accident or with age to suffer from dementia and are unable to make such decision on your own,
- By creating a durable power of attorney, you can empower someone to make monetary decisions on your behalf if, god forbid, one says you suffer from a stroke or become mentally incapacitated and can’t make them for yourself.
- By creating a Trust, you can make an extra layer of asset protection safeguarding that which is yours for your loved ones.
As you can see, estate planning is essential for all, and it is not always estate planning about sizable assets or wealth.
Estate planning is required for the safety and happiness of our family. Reports have suggested that estate planning doesn’t just secure your family’s future but also gives you peace of mind. A study in America has already confirmed that most people believe that having an estate is essential, but very few take it seriously. Now, in the year of the internet, where everything is available online, it would be a shame not to educate yourself on estate planning.
The best part about planning your estate is the ability to prepare for the future today. So many people aren’t just securing the end of their family but are also adding a special provision for their pets. Yes, your furry loved ones will be missing your presence and need taking care of when you are no longer around.
Estate Planning for Pets
First of all, Yes! You can do estate planning for your pets in which you can set up a guardian for your pet after your death. It is quite a notable trend, and people are being quite open about it. It would help if you understood that your pet is a family member because you have an emotional connection with your pet. Now, if you die and you haven’t taken into account adding your pet you’re your estate plan, then the court will treat your pet as a property, in which case they are fully liable to transfer them according to state laws of succession.
So, you wouldn’t want to see your dog or cat in the wrong hands. It’s not just about who will adopt your pet, but it is more about who you want to adopt them. Having estate planning for pets can help you in this situation. We encourage our clients or whoever is reading this to make a small provision for your pets. Also, you can set up a regular payment for your pet’s care from your estate, and it will be given to the person who is going to take care of your pet.
Estate Planning for Pets – Important Notes
Now, if you are planning your estate, we strongly recommend that you don’t leave your pet out of it. You have spent your time with your pet. They tend to be a big part of your life, and when you pass, your pet will miss you and need caring for you. In addition, your pet will require regular care, love, and a family in your absence. Therefore, you must add a pet provision in your will or trust, and here we will discuss some important notes about it.
- First of all, you need to select a guardian for your pet or a person who will take care of your pet after you’re gone.
- Now, you must write a detailed letter of instructions that will be helpful for that guardian to take care of your pet.
- You must set up a regular payment from your estate for your pet’s care.
- You can also select a remainder beneficiary who will receive all the funds left for your pet’s care after the death of your pet.
Keep in mind a pet is a full-time job, and not everyone wants to assume such a responsibility. When selecting a guardian or caretaker for your pet, it is best to first discuss such a case scenario with the person you intend to entrust with your furry friend. Pets can be expensive to maintain. Everything from food to vet visits, toys, and hosing comes into play. When creating an estate plan for your pet, keeping expenses in mind is essential. Setting aside a budget for your pet’s care is something that an avid pet lover will always consider. Unlike humans’ pets can’t speak out, nor can they go out and get a job to self-sustain themselves.
After reading this whole article, we expect you to know that it is essential to include your pet in your estate planning. We think people can easily set a provision for their pets. If you have any questions or concerns about the estate planning of your pet, then feel free to contact us to set up a free consultation where we can address some of your problems or discuss potential considerations. We think that estate planning is essential for all your loved ones, and a pet should not be left out of this equation.