Ask an Attorney: Why Is Estate Planning Important and Where Do I Begin?

Adults of all ages can benefit from creating an estate plan, especially if you have children, own property, or have health concerns. This guide from your Dyer, IN estate planning attorney explains why you need an estate plan even if you’re still a recent grad or newlywed and gives you the details you need to get started.

Importance of Estate Planning

Estate planning protects your loved ones by ensuring that the intended recipients inherit your assets. Having a plan in place can prevent property and wealth disputes between family members. If you have minor children, you establish guardians in your will who will care for them if you cannot. Estate planning can also reduce the amount of inheritance tax your loved ones will owe. 

Getting Started With the Will

The estate plan consists of legal documents establishing your intentions and preferences if you die or become incapacitated. The will serves as the cornerstone of the estate plan for most people. It creates a plan for your assets and provides for children younger than 18 if applicable. You can also document wishes about your funeral, your final resting place, and related end-of-life concerns.

Without a will, state law will determine these important issues. Your loved ones will not have the information and legal standing they need to fulfill your wishes.

Power of Attorney Documents

You may also want to establish a power of attorney, which designates someone to make decisions on your behalf if you can’t decide for yourself. A healthcare power of attorney has responsibility for medical decisions. A financial power of attorney can pay your bills, manage property, and handle other financial matters when you cannot do so independently. You can also create an advance directive, which details the type of care you want at the end of your life.

The Role of Trusts

Trusts play a critical role in many estate plans. These financial vehicles allow you to reduce the size of your taxable estate while providing for beneficiaries such as loved ones and charitable organizations. You can select from many types of trusts designed to meet specific goals, such as a special needs trust to fund specialized medical care and education for a family member who has disabilities.

When you create a trust, you transfer estate assets into the ownership of the trust. These assets will no longer count toward your taxable estate, reducing the eventual taxes your heirs must pay. You may also want to give assets to your beneficiaries during your lifetime to further reduce the tax burden.

Making these important decisions can be complex, but you can reduce the stress by relying on the guidance of an experienced estate planning lawyer. They can advise about the documents you’ll need and the steps you should take based on your financial situation and personal goals. Contact Tanzillo Stassin & Babcock P.C. in Dyer, IN to schedule an appointment with one of our trusted attorneys today.

Tags: estate planning dyer in, estate planning lawyer dyer in
Posted in Uncategorized | No Comments »