Monday, 30 May 2016

Estate Planning: Importance and Advantages

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Creating an estate plan is the best way to ensure that what you have labored for throughout your life will go to the rightful beneficiaries. An estate plan allows you to transfer your assets and to specify where each of your assets goes upon death. Estate planning requires significant time and effort, but the numerous advantages a comprehensive estate plan offers are worth it.

Estate planning is not solely for wealthy individuals. Middle-income earners with good investments also benefit from estate planning. Regardless of the value of your assets, it is important to plan for your estate to guarantee that your financial and philanthropic goals are met even after death. An estate plan comprises documents that address problems that often arise upon death. Some of these include decisions about the care of minor children, rightful recipients of property, and charitable donations. Without an estate plan, these decisions will be carried out by the courts and state law and often, state law is indifferent to individual needs and preferences. Moreover, it does not take into consideration personal relationships. An estate plan ensures that your assets are distributed to your intended beneficiaries.

Estate planning eases the strain on your family in the time of death. It warrants that your beneficiaries will be well provided for and that they will get the most out of your assets. A good estate plan can minimize the costs of transferring property to beneficiaries leaving more money for the recipients. Estate planning, to put it simply, will make sure that your loved ones will be taken care of even when you are gone.

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Linda O. Foster is a Poulsbo, WA-based federal employee benefits specialist. Learn more about estate and retirement planning through this blog.