Meeting with an estate planning attorney is a common practice among people with large estates. Most are inspired by the desire to leave their house in order in case they pass away and to avoid having their property under the court trying to find suitable heirs. However, there are numerous unknown reasons which you should definitely take advantage of. Here is a list of them:
The most common motive for having an estate plan is to avoid probate. Not many have experienced this, but one thing is for sure- they intend to avoid it by all means. This is mostly inspired by the horror probate stories that are aired by the media or stories they hear from friends. All in all, having an estate plan is a way to avoid probates.
One can lose a significant part of their estate to the state due to state taxes, federal estate taxes or even state inheritance taxes. To avoid this, most people resort to setting up an estate plan to reduce their estate taxes. This is because even with basic planning, a married couple can minimize or even do away with estate taxes by establishing ABC Trusts or AB Trusts in their wills or as revocable living trusts. Furthermore, with a number of advanced estate planning methods, individuals and married couples can lessen the inheritance or estate tax bill or do away with it.
Evading a mess
Most people have been witnesses to incidents where their friends or colleagues experienced a waste of their money and time due to their loved one failing to establish an estate plan. This inspires them to hire an estate planning attorney. This way, they get to choose the person who will be in charge in case they are mentally incapacitated or if they die. They also decide who gets what, the time they will get it and the way they will get it once they are gone. This eventually helps avoid family feuds as well as probate court proceedings.
Two significant reasons lead people to set up estate plans to protect their heirs. One is when protecting heirs who are minors. Two is when shielding adult heirs from bad decisions, divorcing spouses, external influences and creditor problems. When the heir is a minor, all the states have a legislature that requires a conservator or guardian to be appointed to oversee the needs and finances of the minor till the minor is of legal age.
By having an estate plan, people can protect their estate from lawsuits. This way, their assets are protected, and they can enjoy the benefits in their lifetime or their beneficiaries when they pass away.
Estate plans are a money-saving medium for any individual or married couple that owns a large estate, and it would be detrimental not to set up one.