While planning your estate is crucial, estate planning is not top of mind for many people. Find out five important reasons why you need an estate plan.
First, having an estate plan can help you avoid probate, a court proceeding in which heirs of an estate are established. Second, an estate plan can help you avoid or reduce state and/or federal estate taxes, which can cut into your heirs’ inheritance. A common way of avoiding estate tax is establishment of a trust.
Third, an estate plan in place after your death or incapacity can help your estate avoid family fights and costly legal battles over your property and assets, since your wishes are clearly stated.
Fourth, estate planning protects your beneficiaries, whether minors or adults. In all 50 states, a guardian or conservator must oversee minors’ needs until adulthood, so nominating the guardian of your choice can be important.
Finally, a properly planned and executed estate plan can protect your assets from unforeseen creditors or lawsuits. However, such planning needs to take place long before the threat of any lawsuit.
To learn more about estate planning in Phoenix, contact Phocus Companies.
