Making arrangements for your passing is one of the least pleasant activities that you will need to do, but it can be essential for protecting your loved ones from chaos and stress following your death. To this end, estate plans can be extremely useful, but you might not fully appreciate the range of benefits that you can enjoy by creating one of these plans.
Manage Tax Implications
If you plan on leaving assets to your survivors, it is important to note that this could potentially result in their owing additional taxes. To avoid inadvertently causing financial stress for your survivors, you can use an estate plan to help mitigate these costs. For example, you can have your estate manage various life-insurance policies for your survivors. The benefits from these policies will not be taxable, and that can allow this money to be used to offset any taxes that are incurred by your survivors. The best option for achieving this goal will vary based on the laws of your state as well as the value of the items that you are leaving, but an experienced estate planner will be able to help you create the most efficient plan for your needs.
It is an unfortunate reality that following a death, fighting can often break out among the survivors. Often these fights stem from conflicts over the possessions that were left behind, the choices made for the funeral, and a host of other issues. By having an estate plan in place, you will minimize the risk of conflict arising by dictating how your possessions will be distributed. Without this plan, your loved ones would have to distribute these assets without help, and that can create a situation that is ripe for potentially intense conflicts.
Ensure Your Wishes Are Fulfilled
Once you pass away, there will be almost no way for you to ensure that your final wishes are respected without an estate plan. For example, your funeral wishes may not be honored due to concerns about costs or religious conflicts. By having an estate plan in place, you can be sure that your wishes will be fully carried out. To help reduce the risk of complications arising, you will need to ensure that any expenses that are accrued by your wishes are accounted for in the estate plan. To this end, an estate planner will be able to help you determine the final cost of your wishes so that you can set aside enough money for these expenses or purchase a large enough life-insurance policy.Share