Estate planning is a topic that can make people feel uncomfortable. In a way, this is understandable, as much of the estate planning process involves a discussion about what should happen if you become incapacitated or when you die.
There is far more to the process than meets the eye. Whether you are in your retirement years or just out of college, estate planning can bring numerous benefits to your life.
A closer look at some of the advantages of estate planning could help to lift the hesitancy over the subject. After all, over 30% of Americans have not yet addressed their estate plan, and this could cause significant problems for their family in the future.
Providing for your children
If you’re in your early 20s or 30s, then death is the least likely thing to be on your mind. At the same time, when you have young children, their security will be your top priority. Thinking about your incapacitation for a brief period is a price worth paying to ensure that your children are always cared for.
Through estate planning documents, you can name a suitable guardian to watch your children should something happen to you. You can also set up trusts that guarantee your child access to education as well as leave important family heirlooms behind for them.
Avoiding family disputes
Difficult as it is to accept, disputes over inheritance can cause families to drift apart. Someone who was close to you but not necessarily a natural heir may feel ostracized after not receiving any inheritance after your passing.
At the same time, a person who showed little interest in your life may appear out of the woodwork to claim a healthy portion of your estate. By stating your wishes clearly in writing, you can reduce the chances of disagreements arising and save your loved ones a lot of extra hassle.
Without clear estate planning documents that detail your wishes, you leave your inheritance in the hands of the court. This may not pan out as you would have wanted. As you make plans for the future, make sure you have a firm grasp of your legal rights.