When estate planning comes to mind, people often think of it as something reserved for the wealthy. After all, the IRS does not require a filing if the value of an estate is less than five and a half million dollars. The average person does not worry about estate taxes, so why worry about estate planning?
However, there are many good reasons that everyone must consider estate planning.
Everyone has an estate
An estate is not just a large house and trust fund. An estate is everything a person owns. Further, debts are also included in an estate. Survivors have to deal with everything the deceased owns and everything the deceased owes. According to an article on Estateplanning.com, too many people fail to plan because they believe that such planning is not for them.
Without estate planning, the deceased's loved ones will carry the burden of paying funeral expenses, debts, taxes, and more without the benefit of clear directions for the assets. What a mess! No one wants to cause a problem for their loved ones. Estate planning removes this burden.
Final wishes may change throughout a lifetime
When a person considers their final wishes, he or she decides many things. He or she makes funeral and burial plans. He or she decides who inherits assets, who will care for minor children, and much more. However, many people make the mistake of only planning once. These desires may change throughout a lifetime. Marriage, divorce, the birth of a child, a new home, family relationships, and more change how someone wants his or her estate handled. Proper estate planning reviews these plans on a regular basis.
Proper estate planning carries out your final wishes efficiently
Many people believe that their heirs have a legal right to their estate or that their loved ones will carry out their wishes. Though in many cases this is true, without proper estate planning, there is no way to guarantee that survivors will honor one's last wishes or do it in a timely manner. According to the American Bar Association, if someone dies without a will, only the courts can make these decisions.
Something as simple as a will helps. Simple planning beforehand saves much headache later.