Have you ever thought about what would happen to your estate when you pass away?
Any personal possessions such as your car, furniture, home, properties, life insurance, savings account, and any other possession can be deemed part of your estate.
You probably want to dictate the terms and conditions of the distribution of your estate so that it does not fall into the wrong hands and everything is managed properly. This is where estate planning proves beneficial as it can help you plan out what happens after you pass away and safeguards your family’s financial interest.
An estate plan can be deemed a legal document or a plan that dictates who will receive your assets, including when and what. Since it is a legal agreement, there are many loopholes that you must avoid to form a solid plan, and you might need the help of an experienced attorney to guide you through the complex structures of estate planning.
Visit Thomas Walters PLLC or any other reputed asset management firm in Texas to understand how their attorneys can help you when it comes to asset planning, protection, and management.
Many people think that they do not need estate planning because they do not have many assets or are way too young to think about such matters. But that is not the case; even if you are in your 40’s, you can not predict how long you are going to live, and it is best to plan out everything in advance.
Also, even if you do not have an extensive portfolio of assets, estate planning is essential, as it will help avoid any disputes amongst the family members or other beneficiaries regarding the distribution of assets after you pass.
Here are some reasons why you should hire an estate planning attorney:
- Avoid probate proceedings
Each state has its laws regarding probate, but the fundamental principle is the same, wherein it is a lengthy process for transferring the deceased person’s assets to the beneficiaries.
The whole process can even take up to two years and might even involve public court proceedings.
So, a good attorney will help you set up a trust or use other legal tools so that your family does not have to go through a long probate process.
- They know the best way to protect your assets.
A well-rounded estate plan will include all the documents that might be required in the future to ensure that your loved ones and other beneficiaries do not have to jump through hoops to get the estate. A well-rounded estate plan may include the following;
- A will
- Power of Attorney
- Medical directive
- General Assignment
- Guardianship Nomination
A lawyer will guide you through the intricacies of various documents to safeguard your family’s interest after your demise.
- Help save time and energy.
Estate planning helps you manage your estate after your demise by ensuring that the assets are distributed how you want them to be. However, if you wish to chart out your estate plan yourself, a simple mistake could cost your family a lot.
People often designate beneficiaries their assets such as IRAs or 401K without paying heed to the tax implications.
So, hiring an experienced estate planning attorney will help you make a sound estate plan, saving your and your family’s time and energy while safeguarding your interests.
- Estate planning lawyers help reduce tax liability.
Your federal tax liability depends on various factors such as the gross value of your estate, debt, expenses while setting up the estate, and other deductions your estate is eligible for.
They will help you map out your tax liability on the net estate after accounting for any donations or transfers to your spouse or children.
A well-charted estate plan will ensure that your family affairs are taken care of, and your beneficiaries do not have to go through a lengthy probate process.