The importance of estate planning is often overlooked. It can be seen as something that is only necessary for elderly individuals or those who are seriously ill. For these reasons, it is estimated that over half of all eligible Americans have no estate plan in place.
The truth is that estate planning can benefit every eligible adult. Here are some of the key benefits of drafting an estate plan.
Providing for your loved ones
If you die without a will or estate planning documents, then you are said to die intestate. In legal terms, what this means is that the state takes control of how your assets are divided. While the courts will typically do their best, there is no way for them to know what your final wishes would have been.
Estate planning documents eliminate this issue. For instance, a will can provide precise instructions on who is to receive your property and other assets. This means that your family and close friends can reap the benefits of your hard-earned savings and assets.
Reducing the risk of disputes
A loved one passing away puts friends and family members in a very upsetting situation. Grief is enough to deal with, without having to cope with disputes over assets. Unfortunately, money can bring out the worst in people and estate planning disputes are common. For example, a distant relative may become less distant after your death and stake a claim to your assets. Having a will and other estate planning documents reduces the risks of these disputes occurring.
If you haven’t addressed your estate plan yet, then the best time to start is today. Remember, you can also make changes at any point so that your final wishes are truly respected.
