Estate Planning and Why It Is Important
Estate planning is a great way of ensuring your desires in terms of healthcare and final property are honoured and your family is still provided for during your absence. Even though it is usually overlooked or downplayed in favour of other immediate needs, comprehensive estate plans can resolve plenty of legal questions that could arise upon death. Estate is made up of all the property and individual owned when they died e.g. bank accounts, securities, real estate, personal property such as jewellery and life insurance policies. Below are some advantages of properly drafted estate plans.
Well drafted estate plans ensure individuals can still provide for their families even after their deaths. Without well drafted estate plans, families get less property and sticks them longer to get anything. This implies that such families are left in a state of quagmire without adequate money to cater for their living expenses and bills. Through good estate planning, families can still be provided for and not face financial difficulty during any untimely deaths.
Without proper estate planning, your family can be left to bear excessive court costs and attorney’s fees, which needless to say waste the little or much you left behind. If an individual dies without a proper estate plan, courts are made to handle everything from property distribution, guardianship of the children and business dissolution. All this is a very expensive process called probate, which easily exceeds USD10,000 for even the most modest of estates. The funds used to cover probate could have been put to better use by the family of the deceased instead of filling the pockets of an attorney.
Through good estate planning, the deceased’s family can access property much quicker. Lack of a comprehensive estate plan could make a family weight 3-9 months until they receive anything from the deceased’s estate. A comprehensive estate plan means that the family is able to meet all its bills, pay for the funeral, pay for outstanding medical expenses and pay for basically anything else that’s required without delay.
A comprehensive estate plan also ensures that retirement is an easy process. While estate planning is synonymous with death, many people may be surprised at the idea that estate planning could be of benefit to them while they are still alive, and not just to the beneficiaries after their death. Healthcare specifically is one area where estate planning can be beneficial by ensuring eligibility for government benefits such as Medicare. Considering that most people pay for medical during their working life, estate planning could grant them eligibility for Medicare which reduces the healthcare costs their loved ones have to meet on their behalf.