Devising a comprehensive and effective estate plan to manage your assets and provide for your family and loved ones after your demise is one of the most critical and important tasks of your life. Unfortunately, a survey conducted by Caring.com revealed that 58% of U.S adults do not have estate planning documents, such as living trust or a will. A lack of an estate plan can be quite problematic for a family, especially if the person who died was a sole breadwinner of the family. Here are some key reasons stating why estate planning is important:
#1 Financial Security for your family
Your family may have to suffer from financial difficulties if you have not devised an estate plan for them. Therefore, it is imperative that you have an effective estate plan prepared by an estate planning lawyer that will allow your family to obtain finances in a timely manner in case of an unexpected death of a family member. This will help your family to pay their bills in a timely manner and sustain other living expenses hence allowing them enough time to create a different source of income.
#2 Keep Your Children Safe
Imagine if you and your spouse are involved in an accident, perish the thought, what would happen to your kids? If you do not have an estate plan in place, your kids may be forced to live in a child protective service until the court determines their guardianship. Conversely, if you do have an estate plan, your children may not have to deal with these problems during this traumatic experience and your input will allow the court to make a more informed decision for their future.
#3 Reduced Expenses
In the absence of an estate plan, attorney’s fees and court costs can soak up a lot of money as they have to bear responsibility to manage many arrangements such as distribution of property, guardianship, and dissolution of business, to name a few. Having an estate plan curated by an experienced and skillful estate planning lawyer can save you thousands of dollars, which otherwise can be utilized by your family to pay their living expenses and other bills.
#4 Minimize Taxes
Taxes can reduce the amount that your family may be able to obtain from your estate. However, there are multiple tax reduction programs and strategies that allow you to significantly reduce your estate tax liability. Therefore, it is vital that you plan your real estate in a manner that your potential tax obligation remain modest.
If you wish to get more information about this subject or schedule a consultation, contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced real estate lawyer.