Throughout your lifetime, you acquire property and other assets though hard work, though inheritance, and though successful financial planning. And whether you are just starting out as a person in your twenties, or you are at or past retirement age, you would like to know that all those efforts will be rewarded and protected.
You would like your assets to be taken care of, especially if you were unable to take care of them yourself. Finally, you would also, of course, like to provide for your children, grandchildren, and any other friends or relative.
While this might make perfectly reasonable sense at first blush, many people are hesitant to plan for their loved ones, not only because they do not want to think about dying (especially if they are young), but also because they find the estate planning process to be intimidating.
The reality, of course, is that something dramatic--serious illness, incapacitation, or death--could occur at any time. And though it is true that such events are more likely to occur as we age, once you reach adulthood it is never to early to draft an estate plan.
However, planning for your loved ones does not need to be burdensome. Many estate plans are relatively straightforward. In addition, although the cost of estate planning may seem significant, the long-term savings in avoiding probate, receiving tax benefits, and managing your assets efficiently will likely outweigh the "up front" costs. Plus you will have the long-lasting peace of mind that comes from thorough planning for the well-being of your friends and family.
Moreover, many people think that as long as they have one instrument, like a last will and testament, that their estate planning issues are resolved. But this is not the case. For instance, a will must be probated in order for it to take effect. So having a will does not avoid the cost, in money and time, of probate, to say nothing of the potential aggravation of a probate fight over your estate.
In addition, a will covers only the property titled in your name at the time of your death. Consequently, any assets jointly held between you and another person are left unaccounted for in a will. If you wish for a specific deposition of your jointly-held assets, you need an instrument in addition to a will. Whatever estate plans you eventually chose, then, it is important that they are complementary.
Another reason some people are resistant to creating an estate plan is that they sincerely believe that their friends and family are on amicable grounds and that they can all be trusted to act reasonably after a loved one dies. However, even if anyone "gets along" now, there is no guarantee that attitudes will remain the same once the chance to receive property enters the picture.
Thus, while you can plan for providing for your close friends and family after you die, through a testamentary trust in a last will, a living trust carries with it several advantages--you can avoid estate taxes, avoid probate, and have come control over funding your trust.
If you live in Michigan and need experienced estate planning help, contact Michael Einheuser for a free consultation. Michael helps families in Bingham Farms, Troy, Farmington Hills, Rochester Hills, Southfield, West Bloomfield Township, Bloomfield Township, and the surrounding Michigan areas.
Schedule your Free Consultation today: (248) 398-4665.Return from the article on Planning Your Estate to the Home Page by clicking here.