A lot of people who haven’t taken the time to create an estate plan finally decide to do so after they realize that creating a plan isn’t so much about helping yourself as it is helping your family. Good estate plans do a lot to ensure that your family will be protected after you’re gone, as well as providing other significant benefits.
Your plan gives your family clear directions.
Sometimes, the hardest thing about a loved one dying is that the death leaves very final decisions up to family members when they are in a state of grief. A grieving family is in no position to make important decisions about your estate, and a good estate plan is one that doesn’t ask them to. Your plan will make your choices known so your family doesn’t have to make difficult decisions.
Your plan protects inheritances.
There are many ways your assets can be depleted. A good estate plan protects against creditors, costs associated with long-term care, as well as minimizes any estate or gift tax. If you don’t have a plan you may leave a lot less behind than you would like.
Your plan prevents fights.
No estate plan will be able to guarantee that your family will be free of conflicts after you are gone, but a well-crafted plan will minimize the potential sources of conflict surrounding your absence. Clearly stating who receives inheritances and providing clear directions can do a lot to avoid disputes between family members.