5 Reasons to Have an Estate Plan
While there are many reasons to make an Estate Plan, the following are some of the main issues people consider:
1. Passing Wealth to the Next Generation
The purpose of Estate Planning is to make sure the wealth and assets you have accumulated through a lifetime of hard work and responsible financial planning get passed along to those you want to inherit. Financially providing for your children’s education or funding a grandchild’s business are goals achieved through Estate Planning. Setting up a comprehensive plan of your goals and wishes ensures that your Estate does not get tied up in court or goes to a relative you do not wish to receive an inheritance.
2. Avoid Having to Pay Estate Taxes
Most people understand that there is an Estate Tax or “Death Tax” but do not know if their estate will be subject to the tax or how to avoid paying an estate tax. Currently, in California, there is no State Estate Tax, and the Federal Estate Tax is set for estates valued over $11.5 Million. While most estates will not come close to that threshold, the $11.5 Million is a fluid number and subject to the current administration. As recent as 2016, this threshold was $5.4 Million, and in 2008 it was $2 Million. By having an Estate Plan with proper tax planning provisions, you can mitigate any possible tax burden and potentially avoid paying taxes at all.
3. Protecting Minor Children
For parents with minor children, one of the biggest fears is leaving those children with no one to care for them. By having an Estate Plan with guardian provisions, you predetermine who will raise your children, as well as create financial safeguards. While children cannot inherit until they reach 18 (or later should you choose), you can put in place a mechanism to provide for their health, support, maintenance, and education.
4. Avoiding Probate
If you have ever had a friend or family who has had to go through Probate, they would tell you that it is something you want to avoid at all costs. If you die without a will and trust in place, your family is left with having to go through the Probate Court to get the authority and determination of who will inherit. Probate Court is costly, time-consuming, and stressful. Help your family avoid the hassle of going through the process of Probate and put in place a sound estate plan.
5. Caring for Your Pets
To some, their pets are an essential part of their lives. We love and care for our pets, and failing to consider what would happen to them should we pass away unexpectedly is a disservice to our pets. In an Estate Plan, we can create a pet sub-trust that will provide the individual appointed to take possession of our pets with financial assistance to care for and feed them. Far too often, the Humane Societies are inundated with pets whose owners have passed away, and they have nowhere to go.
About The Law Office of Natalie A. Miller
Natalie A. Miller is licensed to practice law in California. Information presented on US laws. This article is legal information and should not be seen as legal advice. The opinions contained herein are those of Natalie A. Miller and not of any other organization. The information contained herein does not create an attorney-client relationship nor a requirement that Natalie A. Miller take you on as a client.
