We never shy away from devoting proper time when it comes to planning vacations or any asset to buy or dine at any special spot; however, when it’s about estate planning, we tend to put it off and leave for tomorrow. While planning an estate may seem like an overwhelming thing to do, it’s very important to have all your affairs settled timely. In this blog post, we will discuss what estate planning is, why it’s important, and how an estate lawyer can help you. Let’s get started!
What is estate planning?
Estate planning is all about making arrangements to manage, protect, and distribute your assets after you pass away or in case you become incapacitated. Having such affairs settled at its earliest ensures that your loved ones will be taken care of even after your demise. It also avoids the family disputes over inheritance.
Why is estate planning important?
With its fancy, it sounds like estate planning is just for the people with the actual “estates,” which is quite a misconception. In simple words, everyone should have estate planning. That’s because if we look in legal and financial terms, your estate simply consists of what you possess. It could be your life insurance, furniture, personal possessions, investments, car or saving accounts, etc.
What’s the purpose of making an estate plan?
If you ignore estate planning, there are greater chances that your assets might wind up in legal limbo, that too, for years. All this can ruin the normal lives of your loved ones by putting an unnecessary burden on them as they have to deal with sorting out your finances as if you didn’t do it in the first place.
Apart from this, estate planning is crucial to minimizing estate taxes as well.
Without an estate plan, the law in your state will govern what to do with your possessions, who gets the children’s custody, etc.
What is the right time to plan an estate?
The right time to plan an estate is as soon as you acquire assets like inheriting money, buying a house, or starting a business, which means in the earliest adulthood, even when you have modest assets.
What constitutes estate planning?
Mainly, there are the following things:
- Will, which is a primary document that outlines how your assets will be distributed after your death.
- A living trust that holds your assets while you are alive and can manage them as per your wishes once you become incapacitated.
- Power of attorney to designate someone to make legal and financial decisions on your behalf when you become unable to do so.
- Healthcare proxy to appoint someone to make medical decisions in case you become unable to communicate your wishes.
How can an estate lawyer help you plan your estate?
Many people underestimate the importance of hiring an estate lawyer to plan their future, often believing they can handle such matters all by themselves. In reality, no matter whether the estate is simple or not, planning it well requires professional guidance to ensure there is proper legal execution and no potential complications down the line.
Let’s learn more details about how an estate lawyer can simplify your estate planning in Kitchener:
They understand the complex details of estate planning.
As discussed, planning is about how you sort out your matters and decide how your assets will be divided. But it’s not as simple as it sounds. The procedure involves drafting a will, creating trusts, and choosing beneficiaries. So that nothing goes wrong in any of the steps and every detail complies with legalities, you need an experienced lawyer to advise you throughout the process.
They can ensure your will is accurately drafted.
Proper legal assistance can ensure that your will accurately reflects all your wishes regarding important matters like asset distribution and reduce the chances of misunderstandings, which may not be the case if you choose to go without a professional estate lawyer in Kitchener.
Trust creation
Suppose your situation is complex. You have minors or heirs with special needs. In such cases, it becomes very crucial to seek assistance from estate lawyers to set up trusts to manage the assets for beneficiaries as mentioned before.
They can make strategies to reduce taxes.
Taxes can really be a headache. Having a legal professional by your side you can ward off the stress of forming strategies to minimize the tax. Estate lawyers are proficient at identifying ways and tools like charitable giving or life insurance policies that can save the most of your earnings.
Creditor
If you have significant debts, creditors may attempt to claim assets that you intended for your beneficiaries.
Family Disputes
Contests to a will can arise from family disagreements, leading to costly and emotionally draining legal battles.
Unforeseen Circumstances
Changes in family dynamics, unexpected medical expenses, or even unforeseen legal challenges can all impact your estate plan.
Probate Avoidance
By utilizing trusts and other estate planning tools, you may be able to avoid the probate process altogether, which can be time-consuming, costly, and subject to public scrutiny.
Long-Term Care Planning
They can help you explore options such as long-term care insurance, Medicaid planning, and the use of trusts to protect assets while still qualifying for government assistance.
Financial Planning
They can assist in assessing your financial resources and developing a plan to ensure adequate funds are available for long-term care expenses.
Special Needs Planning
For individuals with special needs, an estate lawyer can help create a comprehensive plan that addresses their unique needs and ensures their financial security and well-being are protected throughout their lives. This may involve establishing special needs trusts or other legal mechanisms to safeguard their assets and ensure they receive the necessary support.
Wrapping Up
Estate planning is not just for rich and old people. If you are also acquiring assets, it is time to seek guidance from a professional estate lawyer. Expert estate lawyers have a knack for managing complex matters and finding ways to save your earnings. Having them by your side, you can plan ahead of time and ensure there is a safe and sound future for the people you love.
