Many people believe that estate planning is only for the rich. This couldn’t be further from the truth, however. Without an estate plan in place, settling your affairs after you pass away could have a long-lasting and expensive impact on your loved ones—regardless of your income or assets. In this article, we examine four reasons that estate planning is so important.
#1: An Estate Plan Protects Your Family
The primary component of most estate plans is designating family members to receive one’s assets. If you fail to make these decisions on the front end through estate planning, Kentucky law will decide who receives your property. In addition, this process can be lengthy and expensive. In other words, if you want to spare your family members and beneficiaries the grief of a long, expensive, and sometimes adversarial process, you must have an estate plan in place.
#2: An Estate Plan Protects Your Young Children
If you have children, the only way to ensure that they will be properly cared for should anything happen to you is to execute a valid estate plan. A major part of this involves naming a guardian for them. Unless you name a guardian for your minor children in a valid will, the courts will decide who will raise them—regardless of your wishes.
#3: An Estate Plan Saves Money on Taxes
Another important function of estate planning is transferring assets to beneficiaries in a manner that produces the smallest possible tax burden for them. With even just a minimal amount of estate planning, you can reduce the taxes owed by those who inherit your assets by a significant amount.
#4: An Estate Plan Prevents Family Squabbles
Finally, estate planning can help prevent family disputes before they start. It is no secret that families often fight over assets and property following the death of a loved one. However, these types of disputes are often the result of a lack of estate planning on the part of the deceased. By clearly establishing who will receive your property after you pass away, you eliminate the possibility of confusion and family strife.
The Bottom Line
Regardless of your income or assets, you need an estate plan. Through proper estate planning, you can keep court interference to a minimum and make the process of distributing your assets much easier on your family and beneficiaries than it would be otherwise.
Shelby County Estate Planning Attorney
At Berkley Oliver PLLC, our experienced estate planning lawyers provide comprehensive estate planning services to clients in Shelby County, Spencer County, and throughout Central Kentucky. Regardless of your estate planning needs, our lawyers have the experience and knowledge necessary to provide you with effective and efficient legal service. When you come to us for help, you can count on us to provide you with compassionate, efficient representation and exceptional personal service. Please contact us today to schedule an initial consultation.