The importance of estate planning has been lost in the modern era, where people have started living longer lives. But this doesn’t give you a reason not to have a plan.
Today more than 60% of adults do not have an estate plan when they are not around anymore. Some do not like to think about their mortality, while some simply think it is not something that needs their attention.
Estate Planning Attorney Denver talked with us and stated a few surprising facts. Most people come to them only when they are about to leave the world for estate planning. And that, too, they have limited knowledge of what estate planning is all about. The only reason why they come for estate planning is just for the Will.
What Is Estate Planning?
Estate planning is the process of the rightful owner of your property after your death. Proper estate planning involves all your assets and estate distributed equally to every individual in your family.
Estate planning covers the following assets.
- Business property.
- Other tangible assets.
Factors To Consider While Planning Your Estate:
You might not realize it, but estate planning is one of the important things that rank higher on your priority list. Often, people do not think about the estate planning process because it means thinking about their death.
However, no matter how you think about it, it is one of the most important things you need to do to attain peace.
So what do you need to think about your estate planning? Or what are the things you need to consider while planning for your estate? The answers vary depending on your lifestyle and what kind of family members you have.
However, if you can consider these factors while creating an estate plan, it will help you smooth the planning process.
1. Is Your Plan Up-To-Date?
One of the most important factors while estate planning is to ensure that your Will is updated. An estate plan is something that keeps needing modification over the period. People around you will change, changing your mind about excluding them from your plan. Hence, you must keep your plan updated.
2. Tax Benefits Over Your Estate:
Inheritance comes with some form of taxes. Your children might not be charged direct taxes on the inheritance but might be liable to pay taxes on the capital gains. Hence while you are planning, you must consider only those assets that are less liable to pay taxes.
3. Testamentary Trust:
If you are concerned about the taxes that your next generation has to pay, you can create trust according to the Will. The Testamentary Trust may help you distribute your estate in a more tax-effective manner. Furthermore, it can reduce the challenges that your Will might face in the future.
4. The Values Of Your Estate:
You must be aware of the current value of your estate. This will give you an idea of how to effectively distribute your property among your family members. Assets are of many types- one that appreciates over time and the other that depreciates. You need to equally distribute both types of assets.
5. Needs Of Your Beneficiary:
Once you have determined who your beneficiary will be, you need to take their needs into consideration as well. The assets you will leave for them will depend on their age, preferences, and family dynamics.
Estate planning is something that ranks higher on your priority list whether you accept it or not. Without the right estate plan, you might ensure that your property falls into the right hand after your death.
After going through the articles, if you have come to a conclusion where you want to create an estate plan, the best way to do so is by hiring an Estate Planning Attorney in Denver.