Do we even need to care what happens after we die?
If you have an estate you wish to pass on, then the answer is a resounding “yes.” An estate requires an estate plan which will ease the transfer of assets to your beneficiaries when you pass on.
So what is the purpose of making an estate plan? Here are a few good reasons to demonstrate its benefits.
Make Your Wishes Clear
Of the benefits of estate planning, the most obvious is that it ensures your wishes are honored after death.
Without estate planning, you have no guarantee that your beneficiaries will receive the inheritance you would choose for them. Your estate will be divided up according to legal familial structures and not ones that reflect your true family circumstances.
This is even more important if your next of kin is not someone you would trust with your estate. An estranged child or a separated married partner can throw a wrench in the works when it’s time to divide assets. Consider that you might be dealing with life-changing sums—you need to know they’re going to the right person.
Keep the Family Together
Death and everything that follows can put immense strain on a family. Grief combined with greed can bring out the worst in people. It could even lead to an irreconcilable breakup of the family.
An estate plan sets out a legal framework for inheritance that few can argue with. Everyone will have a clear legal standing that will curtail most challenges to the will before they start. It’s an excellent way to stop your family degenerating into infighting as though they were on Game of Thrones.
Control the Admin
Even with an estate plan in place, the weeks and months following your death will place a heavy administrative burden on your surviving family. Inheritence is simply a complicated process.
An estate plan will cut down on the amount of paperwork (and legwork) your family will need to complete to distribute your assets. As this can take years in extreme cases, you could be saving your loved ones from an enormous burden of work.
It’s a sad reality that death is expensive. Alongside sundry taxes, there’s also the cost of probate to consider.
Inheriting can lead to a complicated web of taxes that could cause difficulty for your beneficiaries. The more complex your estate, the longer probate is likely to run, which will increase its overall cost.
You can reduce this financial burden on your beneficiaries through estate planning. This way, your beneficiaries can enjoy a greater share of everything you leave behind.
What is the Purpose of Making an Estate Plan? Your Questions Answered
If you’ve ever asked yourself “what is the purpose of making an estate plan?” then these few points should clear it up. Inheritance can be a messy and expensive time for all involved, so an estate plan makes things easier and cheaper for everybody.
Are you looking for more legal wisdom? Make sure to check our blog often for new advice.