Planning an estate reminds us that all people have one trait in common; mortality. Facing this reality requires both courage and preparation in order to ensure that the time and effort of an entire lifetime helps those who we love and cherish. However, if the proper steps are not taken, loved ones will be left with a burden instead of a benefit. Planning an estate with the help of our Oklahoma City estate planning attorney is important because it helps people we care about both fiscally and emotionally.

 

Whay Estate Planning is Important for Your Family

The first reason an estate is important is because it helps ensure that the right people inherit the right assets. An estate includes investments, retirement savings, real estates, business interests, and much more. With all of these variables it is important to plan ahead to avoid future complications.

The instruments used to distribute assets can also be very complicated. If a person has no instruments, he or she has died intestate. This is problematic because a decedent’s assets will be divided without the guidance of the decedent’s wishes. A trust or a will can prevent this from occurring. A trust allows a decedent to dictate major aspects of an estate including who will benefit, when benefits will be distributed, and in what fashion they should be distrusted. A will is also important because there may be assets outside of a trust. Also, a will can help decide life-impacting decisions such as guardians for children.

The second reason estate planning is important is because it helps loved ones with emotional decisions. For example, in the event of incapacitation a will can include medical decisions so that loved ones do not have to guess your wishes. Without guidance, loved ones may spend their whole life wondering if they made the right decision.

The third reason estate planning is important is because it makes sure your assets are passed efficiently. The taxes and fees involved with distributing assets are different depending on the instrument used and the people involved. Not only are the tax laws complex, they are also regularly changing. For example, in 2009 the federal estate tax exemption was 3.5 million dollars. Now there is no federal estate tax exemption. In 2011, however, the current federal tax exemption is one million dollars. With complex law that is always changing, it is important to make sure your assets are distributed as efficiently as possible.

Finally, planning a life estate can help make sure that loved ones are not faced with a financial burden while dealing with your death. Death of a family member is one of the leading causes of a financial crisis. Funeral expenses are expensive, and investing in a life insurance plan may help offset these costs and relieve your loved ones of stress. In addition, a life insurance plan may also help loved ones get back on their feet after a crisis, and not force them to rush back to work due to fiscal necessity.

Planning a life estate takes courage and preparation, however those close to you will be grateful that you took the time and effort to help them get through a morbid time. By planning your estate you can ensure that everything you have worked for will be distributed according to your goals in the most efficient means possible. The Oklahoma estate planning lawyers at Atkins & Markoff and ready and willing to help you with this process, and will ensure that your assets efficiently end up in the right hands.

TrackBack URI for this entry

Comments (0)

Name

Email

Comment

smaller | bigger

I have read and agree to the Terms of Usage.

Add Comment