Many people don’t realize that when they prepare an estate plan, it’s not really for them but for their family and loved ones. Here are some of the benefits of having an estate plan prepared:
1. Plan for incapacity.
While estate planning, you can make arrangements in case of mental or physical incapacity. Living wills and durable health-care powers of attorney enable you to make life support decisions in advance as well as choose someone to make decisions for you about medical treatment.
2. Choose guardians for minors.
Who will raise your children if you die? Without a plan, a court will make that decision, but with a plan, you can nominate the guardian of your choice.
3. Choose executors/trustees for your estate.
Choosing competent executors/trustees and giving them the proper authority will save money, reduce the burden on your survivors, and simplify administration of your estate.
4. Ease the strain on your family.
You can take a burden off your grieving survivors by planning your funeral arrangements when planning your estate. You may also simply want to limit the expense of your burial or designate a location.
5. Ensure your business continues smoothly.
If you own a small business, you can provide for an orderly succession and continuation of its affairs by deciding what will happen to your interest in the business.
6. Ensure inheritance isn’t squandered.
Many individuals make unwise decisions after inheriting a large sum of money, often struggling to make responsible decisions about what to do with it. An estate plan can help inexperienced beneficiaries spend their inheritance wisely, such as on a good education, a home, a safe car, and wise investments.
Overall, a good estate plan can give you peace of mind by ensuring that your affairs are in order and your loved ones are protected and provided for.