Estate planning sounds like a fancy legal term. However, it is quite basic and is not only for the wealthy. Without a plan in place, settling your affairs following your death could have costly effects on your loved ones. This is possible even if you don’t have large IRA, expensive homes, or valuable heirlooms to pass on. Here are reasons why a Celina estate planning attorney is important:
Protect your Beneficiaries
These days, a lot of middle-class families must plan for when something happens to the breadwinner of the family. The main component of estate planning is to designate heirs for your assets. A lack of an estate plan will usually have the courts deciding who gets your assets.
Protecting Your Children
If you have small children, you must prepare for the unthinkable. With the help of an experienced estate planning attorney, you will be able to name their guardians in case you and your spouse pass away before they turn 18. With this will, the court does not have to step in.
Protect Your Loved Ones from the IRS
Estate planning also includes the transferring of assets to heirs with an eye toward making the smallest potential tax burden for them. Although there are ways to decrease the income tax your beneficiaries might need to pay, having an estate plan will ensure your heirs don’t have to owe the tax department a huge sum.
Prevent Family Troubles
An estate plan lets you pick who controls your finances and assets when you become mentally incapacitated or after your death. This will help prevent family struggles and make sure your assets are handled in the way you want them to be. Also, it will help make individualized plans if needed or set up a trust for your child who might be better off not inheriting a lump sum.