Estate planning refers to the overall process of arranging of the disposal and disbursement of an estate in the event of death. Estate planning will prove to be of particular importance in the case that an individual has substantial assets or those with a high fiscal value.
Through estate planning, an individual can help secure that their assets will be transferred to loved ones in order for them to enjoy, and possibly, provide for a better quality of life.
What Goes into Estate Planning?
There are various considerations to take when undertaking estate planning, though most will correlate the issue mostly with a person’s Last Will and Testament, trusts, and nominating a Power of Attorney. Furthermore, many will also have the misconception that estate planning is only for those with wealth and substantial assets, which is not the case.
Any person that has assets, whether it be an automobile, home, or investments, should consider estate planning in order to provide for one’s family and friends after death.
Estate planning will prove to be a complicated and often times confusing ordeal, and it is best to contract the services of a knowledgeable estate planning lawyer or attorney to help make the process a smooth and less stressful one.
What are the Benefits of Estate Planning?
In general terms, estate planning is done for the benefit of surviving family members and friends in the case that an individual dies. Estate planning allows for a person’s assets to be distributed to certain relatives through legal means, which also prevents any kind of disputes over such assets if estate planning was not considered or implemented prior to death.
Not only does estate planning ensure that relatives and loved ones receive and benefit from person’s assets after death, but can also help with the final expenses that may be incurred as result of death. In many cases, expenses that arise from death will often times be left to be handled by surviving family members, which can prove to take quite a financial toll for those not prepared to handle the issue financially. Estate planning can help secure that such expenses are taken care of before a person dies, and thus, not placing a fiscal burden on the family.
Furthermore, estate planning can help provide for children and grandchildren after a person dies. Setting up trusts for such family members allows for the person’s money to flourish, even after death, providing for a sense of financial security to those receiving trusts. It helps secure and protect that such finances and funds are delegated to the children and grandchildren to be used upon reaching a certain age, without leaving such responsibility up to another individual.
In other regards, children that are considered minors can also be provided for in terms of guardianship. Through estate planning, a person can nominate a person to take over the guardianship of minors. This protects the children by not necessitating further hassle and frustration in regards to custody over minors by involving the courts.