Understanding the Importance of Estate Planning
You’ve worked hard all these years to provide yourself and your family with comfortable living while putting your wealth to great use. You have saved a good amount of money, bought a number of properties, and established a few businesses. But have you thought of what’s going to happen to them when your life comes to an end?
This is where the idea of estate planning comes to mind. In simple terms, estate planning is the process of planning how you will leave your assets when you die and distribute them to your spouse, children, or other family members.
Why is it important to have an estate plan?
Estate planning is not only for old and wealthy people. In fact, almost every person can benefit from it regardless of age or net worth.
In the occasion that you become incapable or incompetent of managing your affairs, who will do it for you? With an estate plan, you can choose a person to take over your affairs – businesses and finances. If you don’t have a plan, the court will be the one to pick a person to be in charge. Now, which sounds better?
Estate planning also involves determining who gets to inherit your assets. This allows you to choose who will receive which or how much. This emphasizes the importance of having a will, according to estate planning lawyer in Salt Lake City. If you don’t have a will before you die, Christensen Young & Associates says the court will pass your assets to your state law-defined heirs.
Your family’s financial security is another benefit of having a sound estate planning strategy. Your spouse and children may suffer a decline in their finances if you don’t have a plan and income replacement from life insurance. With a plan, you can ensure their financial security.
Who else can benefit from it?
Having an estate plan can be highly useful for people with blended families and second marriages. The same is true with those with philanthropic engagements and business owners interested in succession planning.
In a more general sense, estate planning helps you ensure the security of your accumulated wealth when you pass away. Seek an estate planning attorney so you can start planning.