Creating an estate plan likely is not at the top of your list of things to do. There are many young adults who believe they have plenty of time to start their estate plan. Additionally, some people think that they do not have enough wealth to distribute leaving little reason to spend the time. The truth is that there is never a wrong time to start planning your estate and you do not need to be wealthy to have one.
That said, you will have to confront your own mortality. This can may be difficult, but the wide range of benefits that estate plans offer make it a process that is worth taking the time to go through.
Protect the wealth of your family
You have spent your entire life working and accumulating assets. Ultimately, your goal is most likely to pass along your assets to the people most important to you. This may be your spouse or potentially children. Creating an estate plan tailored to your specific situation will ensure that your assets remain in your family long after you have passed away.
Planning an estate can protect against a variety of circumstances. If, for example, your spouse decides to remarry, you can still ensure that your wealth eventually passes down to your children. You can also protect your assets from creditors, frivolous lawsuits or other claims by putting the right plan in place.
Maintain control of your assets
One of the greatest advantages to creating an estate plan is being able to control what happens to your assets after your life. If you pass away unexpectedly without a plan in place, you will not be able to decide what happens to your wealth. Having an estate plan will allow you to predetermine who will receive each piece of your estate as well as when each individual receives it.
This allows you to get out in front of any issues that may ensue following your death. Your family will not be able to argue over your assets and your beneficiaries will receive exactly what you put into your estate plan. You can have peace of mind knowing what will happen to everything you have accumulated throughout your lifetime.
Probate can be a pain for your beneficiaries. It can be very simple to avoid, but many people fail to do so which results in a time-consuming and expensive process. For example, you can pour your assets into a revocable trust and allow your beneficiaries to bypass probate. Simply put, you can write specific provisions into your estate plan to help your heirs avoid future headaches.