Why estate planning makes all the difference

On Behalf of | Oct 18, 2021 | Estate Planning | 0 comments

Those who die without a will or trust to direct the disbursement of their property might get their belongings handed to a court. It’s important to remember that estate planning is not only helpful for when you die but in the present as well. In the state of Oregon, estate planning is a legal means of building wealth today while reducing taxation on assets later on. Below are even more reasons to plan an estate.

Giving confidence to your family

Most estates are planned with the intent of leaving assets to one or more individuals. Having an estate plan informs your family of what they’ll get when you die. Prior planning is necessary for estates that seek to eliminate disputes among multiple heirs. Likewise, without any legal instructions for how your estate gets administered, your family might receive nothing.

Preparing for your retirement

A good estate plan accounts for how assets are divided up or dispersed according to personal wishes. Estate planning can also include provisions for retirement. An estate consists of tangible and intangible assets that generate revenue, so the money your estate earns now can be used for retirement or current withdrawals. Planning for retirement starts with building wealth, so here’s how estate planning helps this creation of wealth:

• Asset protection during a divorce
• Business and estate succession plans
• Withdrawal options from revocable trusts
• Power of attorney designations
• Temporary tax sheltering

Ensuring that your assets avoid probate

Your estate could get disputed in probate hearings, which give attendees a claim on your assets if you lacked a plan. Estate planning can keep your assets privately held. Whether via a conservator or a court executor, individuals you didn’t want to inherit can get authority over your property. At death, your assets are made public if you lack legal documentation stating how they’re to be handled. For this reason, creating an official estate plan is vital.