Protecting assets is often not the first priority for most homeowners as more immediate instances seem to require attention; such as vacation planning and saving for a new car. However, if you have recently purchased a home, estate planning should be a priority as you will essentially need to protect your legacy. Even though many homeowners assume that estate planning is an effort intended for the mega-wealthy, anyone that owns a home and has assets of varying kinds should opt for estate planning. The following explains the benefits.
Protect The Best Interests Of Your Beneficiaries
High net worth individuals are not the only individuals who should consider consulting an estate planning attorney as the effort will protect the best interests of your beneficiaries. Middle-class families often need to plan for the loss of the breadwinner of the household. Regardless of the value of the home that you will be leaving behind, or the number of assets, you will need to control what happens to them after you are gone.
The main element of estate planning is assigning heirs to receive your assets in the future, which is why you should consider this effort as vital as having a last will and testament drafted. Whether you need to plan for the handing down of a property or a stock portfolio, planning is crucial for the protection of beneficiaries.
Avoid Tax Issues
There’s no doubt your interest lies with your loved ones, which is why you should consider protecting them from potential impending tax issues. The process of transferring assets to beneficiaries will be handled in a manner that reduces the total tax owed on the estate. Inheritance tax and transfer tax can be a significant concern for heirs, especially if they are not entirely aware of the process; it may come as an unsettling shock.
Eliminate Family Disputes
The passing of a loved one is an undeniable challenge that leaves emotional marks on those left behind. In many instances, family members left behind often feel overwhelmed with the specifics of the estate in question, and family disputes become an unpleasant reality. While some may shun the idea of estate disputes, there are many situations where it makes perfect sense for loved ones to insist on specific actions. However, this situation is always best avoided, especially if you are hoping your assets are divided equally and appropriately among your chosen beneficiaries.
When To Opt For Estate Planning
While many of us may assume that estate planning is an effort that can be pushed aside until later years, hardly anyone can predict untimely death. Therefore, if you own a property, have a stock portfolio, or any other relevant assets, you should opt for estate planning as soon as possible. You will be able to adjust later and modify your estate plan should the need ever arise, which is why it is best to protect your legacy and the future of your loved ones at the soonest possible opportunity.