There are numerous reasons why we tend to procrastinate and avoid doing what we should, but when it comes to estate planning, procrastination can have serious consequences. Here are five reasons why avoiding procrastination is crucial when it comes to estate planning:
- Reduce estate tax and income tax. Estate planning can significantly reduce your and your family’s estate and income taxes. Proper planning can even cut your taxes by half or more, depending on the size of your estate.
- Name guardians for minor children. Your children’s future is paramount; in your absence, who will care for them is critical. You can ensure their well-being is secured by nominating guardians for your minor children in a properly drafted will.
- Choose the timing and circumstances of distributions. Deciding who should receive your assets is the easy part. Deciding how and when they should receive the assets is much more important and challenging. Rather than leaving assets outright to your beneficiaries, you can hold the assets in a trust, which can help protect them from your beneficiaries’ creditors and future ex-spouses. You can also meter out the assets over time, ensuring your beneficiaries get the maximum use of the assets without squandering them.
- Make provisions for heirs with special needs children and other loved ones who require extra attention during life. Effective estate planning can ensure your assets go to the special needs beneficiary and don’t disqualify them from receiving government assistance such as Medicaid.
- Choose who will make decisions for you if you are disabled. People often assume that estate planning only involves planning for what happens at your death. However, a significant aspect of estate planning is addressing what will happen if you become incapacitated. Who will make financial decisions for you? Who will make healthcare decisions for you? Planning for these eventualities is crucial.
While everyone’s reasons for estate planning are unique, the common goal is to ensure that you and your family are cared for during times of need. Effective estate planning can help achieve these goals. A qualified estate planning attorney can help you develop a plan that satisfies your personal and financial goals. Please don’t wait until it’s too late; start planning today.
Compliments of the McGee Law Firm, Attorney Brandon McGee
- Preventive Measures for Life’s Unpredictable Moments - February 29, 2024
- Estate Planning for Unmarried Couples: Key Considerations - February 28, 2024
- What “Sue,” the Tyrannosaurus Rex Skeleton, Teaches us about Estate Planning - February 27, 2024