5 Reasons Why Estate Planning Is Important

The probate court will appoint a representative to distribute your assets. If you do not have a surviving spouse and no other close relative is willing or able to do the work, the court will appoint a public trustee to distribute your assets in accordance with state law. Your estate is essentially everything you own, including your home or other property, car, bank accounts, investments, life insurance, furniture, and personal belongings. But estate planning isn’t just for the ultra-rich or the oldest. Anyone, regardless of financial status or age, can benefit from having an estate plan, assuming you have assets to leave and people to leave them to.

Sometimes married couples can even avoid inheritance tax altogether through AB trusts, ABC trusts, or revocable living trusts. There are also several other, more advanced techniques to reduce taxes on your estate. Reducing or eliminating this tax burden is another reason why it’s best to work with an experienced estate planning attorney. Many people don’t know Skifteretsattest i et dødsbo that the death benefit, not just the cash value, of the life insurance policies you own are subject to inheritance tax. If you have taxable equity (more than $5,490,000 in assets, including the combined death benefit under all of your insurance policies), you must create an irrevocable life insurance fund and transfer your insurance policies to the trust.

I worked with Calista and Charles on my employment law case and the case was resolved in a timely manner. They made me feel relaxed and gave me peace of mind, which is what most clients want. People often think that estate planning is something that matters after your death. You can easily decide which pension plan to take out and when you need health insurance, etc. In this case, you can see that there is an opportunity to pass on your assets to unwanted beneficiaries.

In the event that the beneficiary is a minor, a guardian is assigned until the minor reaches the age of 18. The reason that an estate plan is so important is that without this plan, your assets can end up in legal limbo for years. This can be an unnecessary burden for your heirs and other family members who have to deal with arranging their finances.

It may mean that a friend or non-family member can get the property before immediate family members. Therefore, it is important to plan the allocation of assets so that the right individuals whom the estate planning donor considers to be the beneficiaries receive the assets. But remember that an estate plan is only effective if you keep it up to date.