Is Estate Planning Really That Important?
Updated: May 24
Did you know that estate planning is more than just drafting a will or a trust? An expert in private wealth management in White Plains, NY, will tell you that a successful estate plan is all about protecting your loved ones. Although a successful estate plan involves the seamless transfer of your assets to your heirs when you’re gone, it also means allowing them to access or control your assets when you’re unable to do so yourself.
Instead of devoting more of your time to planning your next vacation, it’s best to think about the people who’ll inherit your assets upon your death. You may think that estate planning isn’t as exciting as booking a trip, but without it, you won’t be able to choose the ones who’ll get everything you worked so hard for. Neglecting to have a solid estate plan in place will have a long-lasting and costly impact on the loved ones you leave behind.
Why Is Estate Planning Important?
It Protects Your Beneficiaries
Whether you’re a high net worth individual or a breadwinner of a middle-class family, you have assets to pass on to your family members. Designating heirs for your assets is the primary component of estate planning. It’s the only way for you to have any control over what happens to your assets when you pass away.
If you don’t have an estate plan in place, the courts will decide who inherits your assets. Keep in mind that the court doesn’t have any idea which of your siblings shouldn’t have any free access to your money and which one has been responsible.
Furthermore, you can’t expect the court to rule that your surviving spouse should be getting your assets. Aside from the fact that the court process can potentially take years to resolve, it will also rack up fees.
It Spares Your Heirs From a Big Tax Burden
Part of the planning process includes creating the smallest possible tax burden for your heirs while transferring assets to them. In other words, estate planning allows you to reduce all of your beneficiaries’ state inheritance taxes, and federal and state taxes. If you intend to spare your beneficiaries from a huge tax bite, you should start thinking about setting up an estate plan.
It Eliminates Family Messes
Things can get ugly and end up in court if one of your siblings thinks they should be in charge of your finances and another thinks they deserve more than the rest of the family. Unless you decide who gets what after you die, your family members will be pitted against each other.
With an estate plan, you can choose to make individualized plans for an heir who has a health problem. You can also decide to give less to the family member whose education you funded and more to the one who took care of you in your later years.
If you’ve been married more than once and have children with all of your spouses, estate planning will help you think through the task of dividing your estate equally or otherwise.
Looking for an Expert in Private Wealth Management in White Plains, NY?
Deciding to work with the team of experts at 1879 Advisors is one of the best decisions you can ever make. We’re here to help you avoid potentially devastating consequences for your beneficiaries. Schedule an appointment with us today.