Many would agree that we live in a world of uncertainty – but why neglect critical financial choices that are in your full control? Creating an estate plan is one of the most important steps you can take to ensure that your property and possessions are distributed according to your wishes. In the process, you’ll also reduce the emotional burden that will be put upon your loved ones after your passing.
Here are three important financial benefits for establishing an estate plan:
- Reducing estate taxes. Minimizing state and federal taxes for your estate is a primary reason to create an estate plan. Many married couples and individuals aim to reduce or even eliminate estate taxes by setting up AB Trusts or ABC Trusts as part of their wills, as well as take advantage of various insurance products and charitable gifting options. There are many planning techniques available to reduce your estate taxes which will directly benefit the beneficiaries of your estate.
- Protecting beneficiaries. One of the most practical reasons to create an estate plan is to protect minor beneficiaries and/or prevent adult beneficiaries from negative circumstances such as poor decision-making, creditor problems or outside influences. If it’s a possibility that your beneficiary will be a minor (under 18 years of age), you will be required to designate a legal guardian in your estate plan to oversee the minor’s needs and finances until he or she becomes a legal adult. You will also be required to choose an “executor” who will have the responsibility of handling the distribution of your property and possessions as you had intended. These legal designations will give you control over who will oversee the administration your assets when the time comes.
- Eliminating uncertainty. Failure to make an estate plan can result in significant uncertainty, stress and anxiety for your loved ones after your passing. Financial feuds within families often ensue as a result of confusion and tension surrounding who will get what within your estate. Going through the estate planning process will completely prevent confusion and uncertainty regarding the handling of your assets.
Having an estate plan will undoubtedly give you peace of mind, in which you can rest assured that your wishes for the allocation of your assets will be granted. Do you have questions about the estate planning process? Get in touch with the experienced financial planners at Buffalo First Wealth Management and let us develop an investment strategy that best suits your estate planning objectives and goals.