There are a number of reasons why people decide to meet an estate planning attorney and create an estate plan, the top five reasons are given below:
Avoiding probate is by far the most common reason behind seeking advice of an estate planning attorney. While many people have never really dealt with it but they know one thing for sure—they want to avoid it at any cost. This stems from a number of probate horror stories shown by media or told by neighbors, business associates or friends. A majority of people wo wish to avoid probate, creating an estate plan checklist emerge as a satisfactory option.
Reducing Estate Taxes
There is a significant loss of one’s estate to the payment of state or federal estate taxes can be a great reason for people to put an estate plan together. Through even the most basic planning, married couples can actually reduce or possibly eliminate taxes together by setting up different trusts as part of their wills or revocable living trusts. Additionally, a variety of advanced estate planning techniques can be used nowadays by both individuals and married couples to make the inheritance or estate tax bills less burdensome or completely eliminate it.
Lately, asset protecting planning has become a major reason why many people, including those who already have an estate plan are getting consultation from the estate planning attorney. Once you even suspect or know that your lawsuit is on the horizon, it is too late to put a plan in place to protect your assets. Instead, you need to start with a strong financial plan and combine that with a comprehensive estate plan that will in turn, protect your assets until you are alive and your beneficiaries after your death.
There are generally two main reasons why people opt an estate plan in order to protect their beneficiaries:
- Protecting minor beneficiaries
- Protecting adult beneficiaries from outside influences, bad decisions, divorcing spouses and creditor problems
If the beneficiary is a minor, then estate laws that require a conservator or guardian is appointed to oversee the minor’s needs and finances until the minor becomes an adult (at age 18 or 21, depending upon state laws).
You can even prevent family disputes and costly legal expenses by designating a guardian and trustee for your minor beneficiaries. Or, if the beneficiary is already an adult but is bad at managing money or have a doubtful spouse or a spouse you fear will take beneficiary’s inheritance in divorce, then you must create an estate plan that will protect the beneficiary from their bad or forced decisions.
Avoiding a Mess
Several individuals hire an estate planning attorney after personally experiencing or seeking a loved one experience a significant waste of money or time due to a loved one’s failure to make an estate plan. Choosing someone to be in charge if you become incapacitated or you die and deciding who will get what, when they will get and how they will get it after you are gone certainly goes a long way towards avoiding family conflicts and expensive probate court proceedings.