Setting up your estate early can help improve your chances of providing for your loved ones after you’re gone. Here are a few specific benefits to consider for setting up an estate early. From providing money to your loved ones to providing security, keeps these benefits in mind if you’re unsure about starting the process early.
1. Financial Security
Establishing an estate plan can help ensure that your assets are distributed according to your wishes, rather than through the court system. This can provide greater financial security for your heirs and other beneficiaries, as well as peace of mind for you. With an estate plan in place, money can be set aside specifically for your heirs rather than going to creditors or taxes. Unfortunately, as many as 60% of Americans don’t have a will, which can leave their family in the dark in case of an emergency.
A trust allows money to be dispersed to beneficiaries without having to go through the probate process. Establishing a trust can help ensure that money is provided to your loved ones as quickly and efficiently as possible. There are different types of trusts, such as living trusts and revocable trusts, so it’s important to understand which kind of trust is best for your needs. Furthermore, trusts can help to protect money from creditors or taxes.
3. Tax Savings
Setting up an estate plan early can help reduce the amount of money that is taxed after your death. Certain trusts and other arrangements can help your money stay out of probate court, which can mean significant money savings for your heirs. You may also be able to take advantage of capital gains and other tax breaks that are only available when you set up an estate in advance.
4. Faster Access to Money
With the home builder market now valued at $118.8 billion, according to IBIS World, people need access to cash to purchase their homes fast. Unfortunately, if money is needed and there is no estate plan in place, it can take weeks or even months to access money from an estate. Establishing an estate plan early can help ensure that money is available quickly, allowing your heirs to access money faster when they need it.
5. Peace of Mind
The most important benefit of setting up an estate early is the peace of mind it provides. Knowing that your money will go to the people you love after you’re gone can be an immense relief, and it can also help to keep family tensions from escalating in the event of your death. Setting up your estate early can provide a sense of security for everyone involved, ensuring that money is not wasted on unnecessary taxes or legal fees. Plus, having an estate plan in place can help you address any personal issues or concerns that arise before it’s too late. An estate plan can provide clarity and direction for your money, giving everyone involved a sense of closure and security.
6. Cash For Emergencies
As much as 50% to 75% of people could benefit from orthodontic treatment. However, treatment can be a bit expensive, and many families may not want or be unable to take out money for a non-emergency procedure. Having money set aside in an estate plan can provide your family with money to cover unexpected expenses, such as orthodontic care, college tuition, medical bills, and more.
7. Protect Your Children
Establishing an estate plan can help protect your children, especially if both parents are deceased. A well-crafted plan can provide money and direction to caregivers who are responsible for raising the children in question. Estate plans can also designate guardians or trustees, giving you peace of mind that your children will be taken care of after you’re gone.
The benefits of setting up an estate plan early are clear. By taking the time to create a plan that reflects your wishes, you can provide money and guidance for those who matter most in your life. With money, tax savings, faster access to money, peace of mind, and more on the line, make sure to consult with an experienced estate planning attorney and create your plan today.