Contrary to popular belief, estate planning is not just about money or taxes. Far from it. Today, it’s more about protecting your assets for yourself and your loved ones, achieving your financial goals, and safeguarding your health care.
Money and taxes aside, here are 7 good reasons you need an estate plan:
1. Your health care
Defining how your medical needs will be addressed in case you cannot make health care decisions for yourself is a primary objective of having an estate plan. You also need to consider how you will meet the costs of long-term care. You need to name someone to make decisions for you and tell them how you want them made. This must be legally documented or the person you want caring for you, cannot.
Probate is an unnecessary, public, and often expensive court process that takes control out of your family’s hands and puts that control in the hands of a Judge who doesn’t know you or what’s important to you. A main focus of estate planning is keeping your family out of court. Period.
3. Family feuds
Family fights over how assets are divided and distributed are common when there is no estate plan and/or trusted advisor to guide family members. Sadly enough, these fights happen even when amounts of money are small OR even when there is no money at stake. Some of the biggest fights happen in storage units over sentimental items with no monetary value at all. If you don’t want your family to fight, you must plan your estate.
4. Beneficiary forms
You likely have several assets that cannot be passed along in a will alone. These include IRAs, life insurance, retirement plans, and annuities, all of which are governed by beneficiary forms that specify who is to receive the assets upon the death of an account holder. Completing these forms properly is estate planning.
5. Kids and parents
If you are currently responsible for the care of minor children, elderly parents, or a person who has special needs you need a plan for the continuation of that care after you are gone.
6. Managing assets
Is your spouse or another family member capable of managing all your assets? If not, you will need to name someone who is capable of doing this now so your assets will be managed wisely for the benefit of your family in the future.
7. Business succession
If you own a business, you will need a succession plan to govern what happens to your ownership shares if something should happen to you.
This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, ™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by contacting our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.
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