3 Reasons Why Estate Planning Is So Important

It seems like everyone today is more caught in the moment instead of thinking about the bigger picture and their future. It is important to secure your future, so you can enjoy the present! Without a plan in place, settling your affairs after you are gone or should you become incapacitated can be costly and very burdensome on your loved ones. Here are three reasons why estate planning is so important:

Protection of Assets

A proper estate plan ensures that your assets are protected and distributed according to your wishes. This means you can control not only how and when your assets are distributed, but may also direct which beneficiaries receive certain assets. A well executed estate plan also helps protect your families inheritance from creditors and estate taxes.

Avoiding Probate

It’s no secret that the California probate process can be painful and very costly. In fact, in California, the cost of probate is based on the value of the assets in your estate. This process can also be very time consuming. I can’t tell you how many stories I’ve heard about people attempting to navigate their way through the probate process, only to be disappointed with the results and fail to obtain an asset which was intended to be given to them. The probate process has also been known to cause bitterness and fighting among family and loved ones. Securing your assets ahead of time ensures your beneficiaries receive the assets you intended to leave them. A proper estate plan can make an already difficult time much easier on your loved ones.

Peace of Mind

Should you become incapacitated or upon your passing, you will want to ensure that your healthcare, finances and minor children are secure and taken care of. An estate plan can also consist of your healthcare directive, durable power of attorney and guardianship. The best estate plans establish your wishes and ensure that only those individuals you trust are acting accordance with your directives. Look, it can be awkward and uncomfortable discussing with your family what happens after your passing, but it is important to take the time to think about these things and establish what you want to happen with your assets. Creating an estate plan to secure your assets and provide for your loved ones after your passing ensures that you can enjoy the present blissfully.