To make sure your loved ones are provided for after your death, estate planning is crucial. Unfortunately, not enough people have it done, and they often realize too late that they should have. This article will discuss the top reasons you should create an estate plan early on in life.
1. Ensures Your Wishes Are Fulfilled
Planning early ensures your wishes are fulfilled. If you don’t leave instructions for your loved ones, they may have to speculate about how you would like your possessions and funeral handled. By getting your estate plan in order, you can ensure that the people you love will be taken care of after your death and that the decisions they have to make will be as easy as possible.
Preparing necessary documents, transferring assets, and establishing power of attorney and healthcare directives are the three main steps in estate planning. You can easily learn about these steps by talking with an attorney or reading information available online.
2. Allows You to Review and Adjust Your Plan
The sooner you create an estate plan, the better. And not just because it’s good for your family. A study by House Grail reports that after painting an interior room, 88% of people feel a greater urge to spend time there. The same goes for estate planning. The sooner you get started, the more you’ll benefit from reviewing and adjusting your plan as lifestyle changes happen.
When you create an estate plan, you can be sure that your assets will be distributed according to your wishes. If you choose to write a will, this document will outline how your assets are divided among your heirs.
3. Protects Your Assets
The sum of all assets held outside of the country increased to $11.3 trillion in 2019. This number is growing yearly, meaning planning your estate early is even more important than ever.
If you plan ahead and draft a will or establish a trust, your assets will be safe from taxes and other costs that may be incurred upon your passing. If you wait until later in life to decide on these matters, it may be too late to make changes or adjustments because of other circumstances like divorce or the death of a spouse or parent. Estate planning also helps protect your loved ones from losing their inheritance due to debt or lawsuits against them after your death.
4. Eases Your Family’s Burden After Your Death
An estate plan can help your family avoid the burden of dealing with your finances and other legal issues after your death. An estate plan is a legal document that details how you want your belongings to be handled, who will take care of your children, and what happens to any money or property you leave behind.
Having confidence that your loved ones will be provided for after your death is a major benefit of having an estate plan in place. It also helps ensure that the people you love get what they deserve from your estate and that any debts are paid off. An estate plan can also make it easier for your spouse to get remarried if he or she remarries after your death.
When it comes to estate planning, it’s always better to be safe than sorry. Creating an estate plan early can help protect you, your family, and your finances in the event of an unexpected death or incapacitation. If you have children or any dependents, consider creating a will that names someone as their guardian if something happens to you before they can handle their own affairs. If you don’t have children but have parents or other close family members who need financial support, consider creating trust so that the money is there when they need it most.