4 Reasons It's Time For Estate Planning
Posted by: Brookside Admin
An estate plan encompasses even more than your typical will, yet many of us don't prioritize creating one. Sadly, there are numerous examples found in the news of wealthy individuals who failed to create an estate plan before passing away or becoming incapacitated. In those situations, lengthy legal battles often occur between family members, or possessions are seized by the government or other third parties. None of these outcomes are likely what you're hoping for.
As if the above reasons weren't enough to persuade you to contact us to begin creating your estate plan, here are additional reasons why it's important to plan now.
Keep control of your finances
If you have a specific plan for your finances after you die, it's vital to have an estate plan in place. By creating a plan, you'll be able to give detailed instructions for both how and when your heirs collect their inheritance. Without an estate plan, your wishes are less likely to be followed correctly, and your heirs may not get what you intended to leave for them at all.
Keep your business running
Similar to your finances, if you own your own business, failing to include plans for that business in your estate plan creates uncertainty. With an estate plan in place, taxes can be minimized, and your business is more likely to continue without interruptions. If it's important to you that all the hardwork you poured into your business isn't undone by your death, an estate plan is mandatory.
Protect yourself from unforeseen circumstances
It's important to create your estate plan now so that your plans for your finances and possessions can be enacted even in the event of an untimely death. But, estate plans aren't only for use after you die. In circumstances where you become disabled, your estate plan can help dictate the type of care you receive, and can also designate an individual to look after your finances. This could help keep your assets out of someone's hands who won't act in your best interest, or isn't qualified to make wise decisions.
Take stock of your assets
Part of the exercise of creating an estate plan is taking inventory of everything you own and cataloging your possessions. This practice helps you get a better picture of your current financial status, which could give you more insight into when you'll be able to retire, or where additional investments could be made. It also can give you ideas for where opportunities exist to grow your current assets. Be sure to include existing retirement accounts, pensions, and other sources of capital, as well as your debts. By the end of this inventory phase, you should have an understanding of how long your current assets will sustain your way of life, and what's likely to be left for your heirs.
These are just some of the reasons why creating your estate plan today is important for all of us. And, if you've created your estate plan in the past, it might be time to update it to better reflect your current situation.
For help with estate planning, contact the experts at Brown Kinion and Company. We'll help you define your goals, get organized and much more.