Having an estate plan is beneficial for not only you, but also your loved ones. After you pass on, things like taxes, fees and debts could be passed on to your family. An estate plan can also ensure that you pass on a guardian to a minor if they are left behind. Here are a couple reasons you should consider hiring an estate planning attorney.
What It Involves
A good estate plan will set up everything after you pass on. Documents that are involved in this process include:
Last will and testament – This document helps determine where your assets, funds, and property will go.
Living trust – Used to manage the titles and assets of the grantor. However, the grantor can revoke a living trust to avoid probate.
Living will – This gives instruction to doctors or hospitals in regard to health decisions should the grantor not be able to make decisions.
Power of attorney – Authorizes a person to act on behalf of legal regards. They essentially control health care, business or legal matters.
Charitable trust – This can dictate a trust used for charitable donations. If the trust qualifies for IRS laws, then the donations to the trust are tax deductible.
Why It Benefits You
Estate planning protects your family in various ways. It allows you to provide more for them after you have passed on. It helps reduce debt owed by you as well as other unnecessary expenses. If you do not decide to plan your estate, the state may be responsible for dividing your assets with little consideration to what you may have wanted. Having an estate plan will make sure your assets are properly managed and will leave your family feeling relieved because of your planning.