{"id":995,"date":"2020-05-11T06:46:39","date_gmt":"2020-05-11T06:46:39","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=995"},"modified":"2020-05-11T06:46:39","modified_gmt":"2020-05-11T06:46:39","slug":"why-is-estate-planning-important-4-key-reasons","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/why-is-estate-planning-important-4-key-reasons\/","title":{"rendered":"Why is Estate Planning Important? 4 Key Reasons"},"content":{"rendered":"<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: arial; font-size: 10pt;\"><img decoding=\"async\" style=\"height: 333px; margin-left: 0px; margin-top: 0px; width: 500px;\" src=\"https:\/\/lh6.googleusercontent.com\/rkkegRas_3d3KgvsrLzspcr2auXABPflzOeKvMkab_o_38NDqEKkss5VQjUVjKzbluBKCLPlHCmt2mae5t2sOPW_TE14X2xdDFWJ8hNAZpJTifjTxD4RqvnJ88NBmImfaQgfsaMxIsF3GlJNjw\" \/><\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">What comes to mind when you think about planning for the future?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">For many of us, short to medium term plans take center stage.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">We look ahead to things like climbing the career ladder, saving enough money to buy a house, getting married, and having kids. Heck, for some people, the most pressing future consideration is where they\u2019ll go for dinner tonight!<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Unfortunately, the vital matter of what happens in the event of our death tends to be relegated to the side-lines. Indeed, <\/span><a style=\"text-decoration-line: none;\" href=\"https:\/\/www.forbes.com\/sites\/zachconway\/2018\/01\/26\/more-than-half-of-americans-dont-have-these-essential-estate-documents-do-you\/#20bf6acd73d6\"><span style=\"background-color: transparent; color: #0000ff; font-family: times new roman; font-size: 12pt;\">over 50% of Americans<\/span><\/a><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\"> lack even a basic estate plan.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">But why is estate planning important?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">It\u2019s a good question, and one that\u2019s worthy of an in-depth answer. In essence, it comes down to what you stand to <\/span><em>lose<\/em><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\"> by failing to plan, and what you\u2019ll <\/span><em>gain<\/em><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\"> by doing it. Looking for further insight into the virtues involved?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Keep reading to learn all about estate planning and why it\u2019s so essential.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">What Is Estate Planning?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">In simple terms, estate planning involves writing down answers to the following kinds of questions:<\/span><\/p>\n<ul>\n<li dir=\"ltr\">\n<p dir=\"ltr\"><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\">What will happen to your assets when you die?<\/span><\/p>\n<\/li>\n<li dir=\"ltr\">\n<p dir=\"ltr\"><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\">How will those assets be divided and who will get what?<\/span><\/p>\n<\/li>\n<li dir=\"ltr\">\n<p dir=\"ltr\"><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\">What will happen to your <\/span><em>liabilities<\/em><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\"> when you die?<\/span><\/p>\n<\/li>\n<li dir=\"ltr\">\n<p dir=\"ltr\"><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\">What are your preferences for potential medical emergencies where you\u2019re unable to make decisions for yourself?<\/span><\/p>\n<\/li>\n<li dir=\"ltr\">\n<p dir=\"ltr\"><span style=\"background-color: transparent; font-family: times new roman; font-size: 12pt;\">Who has the power of attorney in those situations?<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">The answers will, of course, vary by person. Everybody has unique circumstances and desires, which impacts the content and process of planning their estate.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">For example, the estate plan for somebody with minimal assets, and no children is unlikely to be complex. But the opposite could be true for someone with multiple homes, numerous children from previous marriages, and significant financial wealth.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Circumstances aside, though, estate planning is about taking control of your affairs while you still can. By looking ahead, you ensure that your wishes are met and that your closest loved ones are taken care of when you die. Read more about the importance of estate planning in the next section.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Why is Estate Planning Important?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Still wondering why you should care what happens after you die? Here is a selection of primary incentives that should compel anybody to get their estate in order ASAP:<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">1. To Take Control of Your Wealth<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">You might have acquired a reasonable degree of wealth throughout your lifetime.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">You might have multiple homes, stock portfolios, money in the bank, and famous art on the walls. Imagine dying suddenly one day, without a will, having made no attempts to document how your assets should be divided.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">The fate of your worldly possessions would fall to the state in which you live. They\u2019d decide how your <\/span><em>estate<\/em><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\"> would be divided. The wealth you worked so hard to generate could end up going to people and places you\u2019d rather they didn\u2019t.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Of course, you don\u2019t need megabucks to benefit from estate planning in this way. It\u2019s in the interest of anybody with assets to decide what happens to them. It\u2019s a means of ensuring your wishes, as of now, are carried out in your absence.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">2. To Ensure Your Medical Preferences Are Met<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Contrary to popular opinion, estate planning isn\u2019t just about preparing for death.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">It\u2019s also about stating your requirements and desires if you were to be incapacitated somehow. Imagine suffering a serious stroke, having a debilitating accident, or developing dementia. There\u2019s a chance that you\u2019d no longer be able to make decisions for yourself.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Without an estate plan, there\u2019d be no way of knowing your medical or financial preferences. Consider giving somebody the power of attorney to act on your behalf. Telling them what you want to happen in these circumstances will ensure your needs are met.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">3. To Protect Your Family<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Having an estate plan makes your family\u2019s life far easier too.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">In the event of your death, the last thing they need is a long and confusing state of affairs to handle. It should be a time of mourning- not one of familial disputes and legal challenges.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Indeed, it isn\u2019t unheard of for families to argue over large estates. Some people can feel entitled to \u2018their share\u2019 and feel hard-done-by if they don\u2019t get it. Emotional conflict and disputes can rage over the money involved.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">As we\u2019ve noted, a well-formulated estate plan clarifies your wishes and distributes wealth accordingly. The right family-members receive the money they need to support themselves in your absence.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">4. To Reduce the Tax Burden<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Planning your estate helps to protect it from the IRS as well!<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">You can put a strategy in place to limit the amount of tax that can legally be taken from it.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Let\u2019s face it, tax is a tricky enough pill to swallow in life. The fact that the wealth you\u2019ve accrued can be taxed in death is even harder to think about. Without a plan, the people you care most about may only get a percentage of what\u2019s on the table.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">This is another example of the empowering nature of planning your estate. As we\u2019ve said above, it\u2019s about taking control and ensuring the best outcome possible if you die.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Considering working with <\/span><a style=\"text-decoration-line: none;\" href=\"https:\/\/smithbarid.com\/estate-planning-attorneys\"><span style=\"background-color: transparent; color: #0000ff; font-family: times new roman; font-size: 12pt;\">estate planning attorneys<\/span><\/a><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\"> for help making that happen.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Time to Plan Your Estate<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Tens of millions of Americans don\u2019t have an estate plan in place.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">We could understand why! After all, few people revel in the thought of their death. It isn\u2019t easy, or particularly fun, to look ahead and put a plan in place for it.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">As we\u2019ve seen, though, it\u2019s of utmost importance to both you and your family. Without a plan, you leave your wealth in the hands of external powers. There\u2019s no guarantee your wishes will be met.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Why is estate planning important? Hopefully, this post has provided an adequate answer to the question.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"background-color: transparent; color: #000000; font-family: times new roman; font-size: 12pt;\">Want to read more articles like this one? Search \u2018estate\u2019 on the website now.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What comes to mind when you think about planning for the future? For many of us, short to medium term plans take center stage. We look ahead to things like climbing the career ladder, saving enough money to buy a house, getting married, and having kids. Heck, for some people, the most pressing future consideration &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.unitedfinances.com\/blog\/why-is-estate-planning-important-4-key-reasons\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Why is Estate Planning Important? 4 Key Reasons&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/995"}],"collection":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/comments?post=995"}],"version-history":[{"count":1,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/995\/revisions"}],"predecessor-version":[{"id":996,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/995\/revisions\/996"}],"wp:attachment":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/media?parent=995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/categories?post=995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/tags?post=995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}