Though most of us associate the term ‘estate’ with super-rich people, estate planning is not only for the wealthy. Anyone, regardless of his financial status or family dynamics, can benefit from an estate plan, which is an amalgamation of documents that specify how and in what way you want to distribute your assets among your heirs.
Nevertheless, most people neglect to have an estate plan because they fail to give it due importance. A recent survey reveals that only 45% of American adults have their estate planning documents in place, like a living trust or a will. Why should you seek the help of a Honolulu estate planning lawyer? Here are a few reasons to plan your estate ahead of time.
An estate plan safeguards beneficiaries
These days, middle-class families should plan for their future, when something happens to the breadwinner of the family. You don’t have to be extremely rich in order to perform well in the real estate or stock markets, both of which generate assets that can be easily passed on to your heirs. Even when you’re leaving a second home, unless you decide who receives the property after you pass away, anyone can exercise control over it. This is why it is imperative for you to seek the help of an estate planning lawyer.
Heirs can avoid a big tax bite through an estate plan
As far as estate planning is concerned, it is all about protecting your loved ones, which means offering them protection from the IRS. One of the key benefits of having an estate plan is transferring assets to heirs in order to reduce their tax burden in the near future. A little bit of prior estate planning can allow couples to reduce a portion of or all of their state and federal estate taxes and other state inheritance taxes.
Young children can be protected with an estate plan
None of us will ever think of dying young, but whenever you are a parent of small children, you have to prepare for the inevitable. This is where the importance of a will comes in. In order to ensure that your children are well taken care of after your death, it is vital to name a guardian in the event of your death.
Therefore, now that you’re aware of the reasons to invest in estate planning, it is a wiser decision to get the help of a lawyer before it’s too late.