Cohen & Cohen: Reasons to Have an Estate Plan

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Reasons To Have An Estate Plan

Life is unpredictable. And while no one wants to reflect on their mortality, the fact is that everyone will pass away eventually. This means that our assets and finances will have to be distributed to someone else, and by having an estate plan, we can leave behind instructions on what assets we want to give to whom. Without an estate plan in place, how your legacy is handled after you have passed on, may be at risk. Here are reasons to take the time now to prepare for the future.

Assets go to the right beneficiaries.

If you do not have an estate plan, then your assets may go through probate, which means that your assets may not be given to beneficiaries quickly. If you die without a will, the court is likely to handle your assets based on intestate succession rules and law, not necessarily what your personal preferences would have been. So essentially, without an estate plan, the assets you would have wanted to go to certain loved ones may not happen. If you want to ensure specific assets are transferred to the right beneficiaries, then having an estate plan is a must.

Guardianship for minors will be arranged.

If you have children that are under the age of 18 and are your dependents, an estate plan can help prepare for their future as well if the unexpected were to occur. If you do not have an estate plan before you die, your kids may be placed into the foster care system if you and their other parent passes away. Through an estate plan, you can make sure that your kids are properly cared for by a designated guardian or family member that you trust.

You have plans for healthcare decisions.

Estate plans offer so much more than distributing assets when you have passed on. They can be useful by providing end-of-life requests with a healthcare power of attorney or health care proxy. Such documents outline what your end-of-life treatment wishes would be should you become incapacitated and cannot communicate them at the time. As a medical mistake lawyer from Cohen & Cohen, P.C. explains, if something were to go awry with your medical care, such as a doctor or other medical professional committing a grave mistake, then if your estate plan is sound, at least you have plans that can not be changed in the unfortunate event something goes terribly wrong.

Your assets are protected from creditors.

If you die with debt, creditors may pursue payment through obtaining your assets.

But with an estate plan, you can arrange for asset protection through different strategies, such as establishing offshore trusts. By taking precautions now, you can rest more easily knowing that your family will not lose possessions in the event of an unrelenting creditor who is aggressively seeking payment.

Everyone can benefit from having an estate plan, whether their assets are expansive or more modest. By taking preventative steps now and establishing an estate plan, you can have peace of mind that everything is taken care of in the event of your early departure. It does not matter how young or old you are, if you do not have an estate plan already in place, contact a reliable estate planning attorney today.