One of the reasons that people often give for putting off their estate planning is that they don’t want to spend money to do it. They just want to save that money so that their children can have it. There are some issues with this strategy, though, including the fact that you can actually save money by planning ahead.
For one thing, your estate has to go through probate if you have no will. This can take a long time and rack up significant court fees. Your heirs then have to pay those fees out of your estate. It could cost them much more than it would have cost you to just plan in advance.
Another thing to consider is that taxes can often be addressed during the estate planning process. There may be ways to reduce the taxes you or your heirs will have to pay. Yes, it costs money to do this, but that total payment may be far less than what your estate would have paid in taxes if you didn’t do it.
Finally, an estate plan reduces the odds of a dispute between your heirs. Disputes can get very expensive, especially when they’re tied up in the legal system for a long time. Planning ahead lowers this risk, so it can save money and help to keep your heirs on good terms.
Making your plan
As you can see, your most economical choice is usually to create a plan well in advance. If you have questions about how to do this, our firm can help.