4 Reasons Why You Need to Develop an Estate Plan
Did you know you have an estate? It’s true. Everything you own, including your car, furniture, investments, home, and bank accounts, falls under your estate. When you die, anything under your name needs to go somewhere. That’s where an estate plan comes in.
If you have people you care about and want to protect, estate planning is essential. No matter the size or amount of your assets, there are many personal and financial reasons to have an estate plan in place.
4 Reasons to Have an Estate Plan
1. Reduce Expensive Taxes
Even when you die, taxes still apply to your assets. This includes federal and state inheritance taxes. When you make an estate plan, you can possibly help protect your loved ones from costly tax expenses.
For instance, if you have an investment account like an IRA, your estate plan can include converting it to a ROTH IRA so your beneficiaries can receive the money tax-free. Working with an experienced attorney can help you discover how to save your loved ones from tax-related expenses.
2. Set Up Generational Wealth & Protect Your Assets
Without an estate plan, your assets may be taken by creditors to settle any unpaid debts, or they may pass to the state rather than a chosen beneficiary. Creating an estate plan ensures your assets are distributed to the right people.
You can designate who receives your possessions and specifically customize how your assets are allocated. For example, if you don’t want your daughter to receive the entirety of your accounts all at once, you can specify how much money she can receive over the course of several years.
3. Charitable Giving
Many people want to pay it forward after their passing. With an estate plan, you can assign a portion of your assets to go to your favorite charities or non-profit organizations. This can include a donation of possessions or a particular percentage of money or investments.
4. End-of-Life Treatment & Power of Attorney
None of us can predict the future, which may include being unable to make our own decisions one day. Should you ever become incapacitated, a healthcare directive allows you to designate a person of your choosing to decide your healthcare treatment.
You can also include a power of attorney in your estate plan. This allows you to appoint a trusted person to make decisions on your behalf on everything from financial matters to medical care. Doing so will ensure your wishes are followed when you can’t make the decisions yourself.
Not Sure What You Need in Your Estate Plan? We Can Help.
What you include in your estate plan will always be unique to your situation. At White & Associates, our experienced estate planning attorneys can help you determine how to best protect your loved ones and allocate your estate. To discuss your situation and find the best estate planning options for you, call us today at 763-241-0477 or send us a message.
