- September 24, 2021
- Posted by: Smith & Smith
- Category: Estate planning
Estate planning isn’t just for the rich. Even if you don’t have an expensive property, or precious art to pass on, settling your affairs after you die could have a long-lasting impact on your loved ones if you don’t have a plan in place. Are you still not sure that an estate plan is necessary? Consider the following reasons why you should have one to avoid possibly disastrous consequences for your successors.
What Is Estate Planning?
Estate planning is the preparation of activities to manage an individual’s asset base in the case of incapacity or death. The planning includes the distribution of assets to heirs as well as the payment of estate taxes. Most estate plans are created with the assistance of an estate law practitioner.
Reasons Why Estate Planning Is Very important
Beneficiaries are safeguarded by an estate plan
The most important aspect of estate planning is naming successors for your assets, whether they’re a vacation home or a stock portfolio. Without an estate plan, the courts will often decide who receives your assets, a process that can take years, incur fees, and become contentious. After all, a court has no way of knowing which sibling is to blame and which should not have unfettered access to income. Moreover, the courts will not automatically rule that the surviving spouse receives everything.
An estate plan saves heirs a huge tax bill
Estate planning is about protecting your loved ones, which includes shielding them from the Internal Revenue Service (IRS). Transferring assets to heirs to create the least amount of tax burden for them is critical to estate planning. Even a little estate planning can help couples save a significant portion, if not all, of their federal and state estate taxes and state inheritance taxes. There are various ways to reduce the amount of income tax that beneficiaries may have to pay.
What are the benefits of estate planning?
If you are searching for the best estate planning service in Arlington, Texas, please contact Smith & Smith CPAs. An estate plan can assist safeguard you both during your lifetime and after your death. A well-rounded estate plan allows you to:
- Protect your assets – If you are unable to make decisions or speak for yourself, you can ensure that your goals and needs are honored.
- Ensure your wishes are fulfilled – End-of-life care is an important topic to discuss with your loved ones. You can define your ultimate desires and make special provisions for your remains in an estate plan.
- Provide peace of mind – You run the danger of having the court decide what happens to your possessions if you don’t have an estate plan. This procedure, known as probate, might take several weeks or months to complete. Estate planning can help to reduce your family’s financial difficulties following your death.
- Maintain your privacy– You may be able to avoid probate if you create an estate plan ahead of time. As a result, your estate plan would not be made public.
- Minimize tax transfers– If you intend to leave your fortune to loved ones after your death, the estate planning process can assist you in minimizing the impact of taxes on your assets.
We hope you have found an answer to all of your queries about Why Estate Planning Is Very Important. If done correctly, Estate Planning has various advantages. If you have any more questions, please contact Smith & Smith CPAs in Arlington, Texas. We are here to help you solve all of your problems by providing the best service available.