Estate planning is something you have likely heard about, but maybe not given much thought. Nobody wants to think about the end of their life. However, it is never too early to get a plan in place. Not having an estate plan is a huge mistake that will have lasting effects.
U.S. News and World Report explains that the biggest reason to have an estate plan is to save your heirs from hassles. Without an estate plan, there is too much room for arguments and legal issues that could tie up your assets for a long time.
Having an estate plan can let your estate go through probate quickly or avoid it completely. This will save your estate and heirs money and time. It can ensure your heirs get the assets they need right after your death instead of having to wait through the probate process.
You can use an estate plan to carefully make decisions that will reduce or limit your tax liability. Planning for taxes is the best way to help your heirs avoid huge tax bills once you die. It also preserves as much of your assets as possible to pass to your heirs rather than going to the government as a tax payment.
If you have minor children, an estate plan can prevent them from ending up in state custody or having to go through the process of finding a guardian for them. It also allows you to take care of them financially by leaving them money in a trust or through another method.