Estate planning isn’t just for young families: it’s for everyone. But It’s particularly important for young families who are just starting out. Why? Estate Planning goes far beyond just doing a Will (one and done) and throwing a little bit of money for your inheritance. These are ten top tips that everyone should consider.
- Protecting Your Little Ones:
Estate planning is particularly important in the event that (God Forbid) something happens to you or your spouse. Designate a guardian in your Will for your (minor) child(ren). That will ensure that you can rest assured that your kids will be raised by someone you trust, with values aligned with your own.
- Avoiding Family Feuds:
Let’s face it, money can bring out the worst in people, especially when emotions are running high. How many squabbles have you read about in court play out? That’s where having a proper estate plan comes in; it involves ensuring that your assets are taken care of when you die. It goes beyond documentation and a Will: it involves creating an inventory of your possessions, your entire family’s wishes, your beneficiaries, etc.
- Financial Security for Your Family:
Estate planning is about safeguarding your family’s financial security: this includes your life insurance policies, retirement accounts, your debts, and your liabilities. This can provide a safety net for your loved ones if you’re not around.
- Minimizing Taxes:
Nobody likes paying taxes. That is why you may want to employ various techniques when it comes to passing down your hard-earned wealth: trusts for your assets, gifting strategies, etc., can all help mitigate tax liabilities. This means that there is more time free for you and your family to enjoy each other’s company.
- Planning for Incapacity:
Imagine that you were in a car accident and wound up in a car accident. What if you can’t speak on your behalf? That’s where a Living Will for your health comes in: this document “speaks” on your behalf if you can’t. Estate planning allows you to designate someone else to make your medical decisions.
- Protecting Your Business:
Estate planning definitely allows you to protect your business. Budding entrepreneurs, take note! Estate planning allows for a smooth transition of ownership and management of your business. An heir, if you will.
- Avoiding Probate:
Probate can be a lengthy and expensive process, tying up your assets and leaving your loved ones in limbo. Probate essentially holds up the entire progression of your heirs inheriting your estate. It involves being tied up in court fees and paperwork limbo. Estate planning can help streamline the process.
- Charitable Giving:
Do you have causes or organizations that are near and dear to you? Are you a philanthropist at heart? That’s what estate planning allows you to be (within reason, of course). Estate planning allows you to leave behind your assets and money to charities that you really care about.
- Protecting Your Privacy:
Your estate becomes a matter of public record upon your passing – notable exceptions, like the Queen of England, exist of course – and these estates are subject to public scrutiny. Estate planning can help protect your family’s privacy by keeping sensitive information out of the public eye. While your estate may be a matter of public record, you may be able to keep the really sensitive information under wraps.
- Peace of Mind:
Estate planning provides invaluable peace of mind. Knowing that you’ve taken the necessary steps to protect your family and assets allows you to live life to the fullest. It just takes that burden off your shoulders.
From protecting your children and securing your financial future, this is a list of the 10 benefits of estate planning for young families, to preserve your privacy, estate planning is a vital tool for building a solid foundation for your family’s future.