Assets, the value of those assets and where those assets should go seem like a simple approach to estate planning. However, there is no specific answer that fits everyone at all times, according to Forbes in "The 3 Reasons Why People Do Estate Planning."
However, there are three basic categories of reasons for why people should get an estate plan including:
- The first reason is to lower costs. Estate planning can help avoid having an estate go through probate, which can be an expensive process. Another thing it can do is to lower tax burdens on estates and heirs. Therefore, money that would otherwise be lost, stays in the estate for heirs.
- A second reason for estate planning is to protect assets for heirs. Wanting to make sure your assets are not lost paying for nursing home care, is a reason to plan your estate. You can also use trusts to protect some assets from being lost for other reasons.
- The third reason is to manage and control who will get your property after you pass away and how they will receive it. This includes more than just giving property directly to heirs. With estate planning, you can also make sure it is a challenge for an irresponsible heir to waste their inheritance.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances.
Reference: Forbes (May 21, 2018) "The 3 Reasons Why People Do Estate Planning."