Importance of Estate Planning

importance of estate planning

The importance of estate planning can’t be overstated.

Many people spend more time planning vacations than they spend planning for their own protection during their life and how their final estate will be distributed.

Even insurance professionals, who see bad stuff all the time, put off estate planning, but have the time for lavish vacations.

Estate Planning

  • Allows you to choose who protects you
  • Allows you to choose who gets your stuff and how much
  • Minimizes family fights
  • Names guardians for children under 18 years old
  • Minimizes or eliminates Probate

Choose Who Protects You

Without a plan in place, the courts and a Judge get to decide who protects you if you are mentally unable to make decisions.  With a plan, you have decided ahead of time who that is and how much power they can have.

Who Gets Your Stuff

Without a plan, the State has written a set of laws that says who gets how much of your stuff.  Unfortunately, it doesn’t say who gets what.  Often the entire estate has to be sold and the money split.  This typically leaves one or more of the children bitter.

With a plan, you decide who gets what, how much, how, and when.

Importance of Estate Planning – Minimize Family Fights

It doesn’t seem to matter how much or how little people have when they pass, families often fight over it.  You can stop fights before they have a chance to even begin.

You choose who is in control during your lifetime with a durable power of attorney and afterwards with a Will or Trust.

Importance of Estate Planning – Pick Guardians

Nobody wants to think about it, but if the worst happens, your children deserve to be taken care of. To make sure young children are cared for by who you want and in the way you want you will want to name their guardians.

Conclusion

If you want your family protected like they deserve, then the importance of estate planning can’t be stressed enough. If you want you, your assets, and children protected when you can no longer do it, you need an estate plan.

See Also


External Links


https://www.investopedia.com/articles/wealth-management/122915/4-reasons-estate-planning-so-important.asp