Many people think of estate planning as something that only benefits loved ones after death. While it is true that an estate plan provides for family members, it can also offer significant benefits during one’s own lifetime.
If you are on the fence about starting your estate plan at your current point in life, consider the ways you stand to benefit in the near term.
Control over your assets
An estate plan allows you to retain control over your own financial and medical decisions. A durable power of attorney, in particular, gives a designated individual the authority to manage your assets if you become incapacitated. This ensures that financial affairs continue without disruption. This can be an essential way to protect your personal and business interests.
Similarly, a healthcare directive outlines your preferences for medical care in case you cannot communicate. Having this in place can provide peace of mind about how medical professionals will handle certain situations.
Tax advantages and financial planning
Estate plans also offer opportunities for tax reduction and wealth management. Through proper planning, you can minimize income taxes or avoid unnecessary penalties. Trusts, for example, can shield certain assets from taxation and probate costs. This preserves wealth, ensuring it remains available for personal use or to pass on to future generations.
Protection from creditors and legal challenges
An estate plan can safeguard personal and business assets from creditors. By using trusts and other planning tools, you can reduce the risk of losing assets to lawsuits or debts. This can provide a level of financial security during your lifetime by protecting wealth from unexpected claims.
Estate planning is not just for the future; it offers immediate advantages that can bolster financial security and peace of mind during life. Without an estate plan in place, unexpected events can throw your estate into disarray even if you remain in good health.
