Estate Planning | What Your Family Should Know About Estate Planning
Estate Planning | While no one likes to consider dying, it is a fact of life. For families, a death of a parent can lead to financial instability. Although the hope is for parents to always be there for their children, it is important to do estate planning before a tragedy strikes. This ensures that family conflicts are avoided and the family has the minimum amount of stress during one of the most difficult times in their lives.
Choosing the Right Plan
One of the first things that needs to be done is figuring out how valuable items will be passed along. Individuals should plan for what happens if they become disabled or die prematurely. A guardian or an inheritance manager should be chosen to look out for the needs of minor children. If a loved one is not considered responsible enough with money, a technique must be used to plan and prepare for the worst outcome.
Life Insurance, Business Transfers and Taxes
Another aspect of estate planning is minimizing the tax implications of any transfer. Taxes, legal fees and court costs can eat into an inheritance, so it is important to plan out an estate transfer for the minimum amount of costs. To add further protection for the family, life insurance and disability insurance should be found. Long-term care insurance can also be used to prepare in advance for an extended illness or unforeseen injury.
Preparing for the Worst
Too many people do not create an estate plan because they think that they have plenty of time left. They may not feel like they own enough to be worried, or they may not want to think about what could happen. Estate planning is not just for the wealthy. It ensures that a family will be able to preserve their wealth and comfort in the event that something happens to the breadwinner. Even retired people or non-working spouses can benefit from estate plans. If the spouse who watches the children dies, additional money will be needed to hire a babysitter. By purchasing life insurance and planning ahead, both spouses can ensure that their family is secure following a tragedy.
