New York Estate Planning & Elder Law Blog
While some people think that only the wealthiest people require estate plans, this is simply not true. Everyone can benefit from an estate plan. Despite this, the American Association of Retired Persons reports that over half of adult individuals in the United States lack estate planning documents. There are a number of reasons why people delay estate planning including that if people feel in good health and young there often does not appear to be a need for an estate plan. This article a number of other reasons why a person should make sure to create an estate plan.
# 1 – To Create a Plan to Pass on Assets
A will is the most fundamental estate planning tool and involves the appointment of a third party who is responsible for administering an estate after an individual’s death. If you have minor children, it is also possible in a will to nominate a guardian for your children in case you die before the children reach the age of eighteen. For specific types of assets like retirement accounts or life insurance, however, it is often critical to make sure that beneficiaries are appropriately named in a will.
# 2 – To Achieve Philanthropic Goals
If you have philanthropic goals, an estate plan has the potential to help make certain that you objectives are fully achieved. Many people discover that detailed estate planning allows them to pass on assets in their estate exactly how they desire.
# 3 – To Make Sure Beneficiaries Are Ready to Receive a Gift
Prepare future generations to receive wealth can be particularly helpful. Developing an estate plan can also help to make sure that beneficiaries understand their involvement in receiving an asset. As a result, estate planning tools can be used to make sure that assets are successfully passed between family members.
# 4 – To Preserve Family Wealth
Many of the techniques that are used to transfer assets also have the ability to protect these assets, which can play a critical role when a family wants to preserve their assets for generations to come. Some of the most common methods used to preserve a family’s assets include irrevocable trusts and limited liability organizations.
# 5 – To Reduce Transfer Taxes
Increasing the amount of assets that a person is able to transfer to beneficiaries can be a critical aspect of successful estate planning. Even though the Tax Cuts and Jobs Act of 2017 expanded the amount that individuals are capable of giving away at death, in many cases these assets still end up subject to transfer taxes. Through clever estate planning, however, it is often possible to further reduce the amount of transfer taxes.
Speak with an Experienced Estate Planning Lawyer
If you or a loved one is interested in estate planning, you should not hesitate to speak with an experienced attorney at Ettinger Law Firm. Our law firm understands the complex issues involved with create estate plans but can make sure your plans are fully carried out. Contact us today to schedule an initial free case evaluation.