An estate plan is one of the crucial plans you will ever make in your life. No matter how fancy the word sounds, we all have an estate. It includes your home, car, savings, etc. Estate planning helps you in naming the people or organizations you want to receive your left assets after your death. estate planning starts with a will, in which you provide instructions that are to be followed in the division of the assets possessed by you. However, good estate planning is more than that. In this article, we will discuss the benefits of having an estate plan. 

Essential Components of a Good Estate Planning 

Estate planning comprises various essential components. The following are some of them :

• Provide instructions for your care and financial matters if you become incapacitated before death. 
• Include instructions of transfer of your business at your retirement, long term illness, or death 
• Provide a name of a guardian for your minor. 
• Minimize taxes and unnecessary legal fees by aligning your assets with your estate plan. 
• Do not disqualify family members with special needs by keeping them off your government benefits. 
• Include arrangements for life assurance and disability income assurance. 

 

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Importance of an Estate Plan

Estate planning avoids devastating consequences. There are several reasons for which you should have an estate plan. The following of them are as follows :

1. Division of Assets

 Making an estate plan is important to avoid estate disputes later. After your death, your will proceed. On the other hand, if you do not come with an estate plan, the court will decide who gets your assets. And it complicates things even more. 

2. Override Intestate Succession Statute 

It is a hard fact to believe that your state has already decided a will after you. By planning your estate plan, you can override it. 

3. Protection of Your Family

No one wants to think about death but it’s an unavoidable truth. No one can deceive death. If you have a family and want your children protected after your death, make an estate plan now. Without a will, the court will decide for you. 

4. Avoid Estate Disputes

To avoid family fights over assets, plan an estate plan. As part of your will, you can choose someone in charge after your death. You will decide who gets what. In this way, you will be able to avoid estate disputes. 

5. Avoid Probate

Probate is the process, in which under the court’s supervision, your assets are calculated. It pays off any bills or standing debts. The remaining assets are divided into family members. The Probate can take a lot of time to process. In addition, it is costly as well. However, you can avoid Probate by owning assets jointly with your spouse or provide for beneficiary designation. That is how working with an estate planning attorney pays you off in the long run.