In addition to making sure your assets reach the people you choose, estate planning can also help minimize income, gift, and wealth taxes. Without an estate plan and, in particular, a will, your state laws will determine what will happen to your possessions and the courts will decide who gets custody of your children. An estate plan helps protect your wishes for the future of your assets and your family, even when you are no longer around. It's important to create an estate plan to ensure that your affairs are managed according to your wishes.
An estate plan can also help reduce the burden of taxes and other costs for your loved ones after your death.
Estate planning
is about empowering people to make their own decisions about their future and the future of their loved ones. Here are five of the most common reasons why people decide to create an estate plan:1.Protecting Beneficiaries - Estate planning is much more than deciding who to leave your things to, it's about taking care of your loved ones when you're no longer here. In general, there are two main reasons why you might want to protect your beneficiaries.First, your beneficiaries may be minors, in which case state law (and good practices) requires that a guardian or curator be appointed to oversee the child's needs and finances until they reach the age of majority (18 in New Mexico). However, as we all know, in some cases, adult beneficiaries also need protection, which brings us to the second main reason why people may want to consult an attorney who specializes in estate planning.
2.Asset Protection
- You can protect the beneficiary's estate from an authoritarian spouse or partner who could squander their inheritance or possibly keep it in the event of a divorce. In recent years, asset protection has become one of the most popular (and important) reasons why people consult an attorney who specializes in estate planning. An estate plan can handle all of these arrangements and ensure that the future of the company you've worked so hard to build is in the hands of a trusted heir.3.Avoiding Probate
- Plan your health care at the end of your life Estate plans can do more than just distribute your assets at the end of your life.In addition to wasting time and money, failing to draw up a comprehensive estate plan can create chaos for your family and often lead to major breakups and damage relationships.
4.Crafting Your Estate Plan
- Crafting your estate plan involves a lot of moving parts, and there are a few things you should consider before starting the process. Avoiding probate is easily one of the most common reasons people seek the guidance of an estate planning lawyer. You should also make sure that your lawyer is up to date on any changes in law related to your estate plan, including estate tax and estate tax laws.5.Passing on a Legacy
- Having a full estate plan can help your family stay afloat after a tragedy and help you pass on a legacy to those you leave behind. However, a fundamental component of estate planning includes documentation in case you become incapacitated.For example, if the children are not old or mature enough to manage a major estate, an estate plan can address this problem by establishing provisions through a trust. However, everyone can benefit from establishing an estate plan early in life, especially if you are the head of household or have a family that depends on your salary. If you have a former spouse that you want to exclude from your assets or a child that you do not want to inherit from you, estate planning can also be adapted to these wishes. Your estate plan may even describe how you hope to convey aspects of your life, such as religion, education, and other values.
An estate plan includes your instructions about what you want to happen to everything you own after you die.
