Top Reasons to Do Estate Planning
There are increasing numbers of people who have come to realize the need to do estate planning or draft their wills. And yet, a lot of people still question the value of wills and taking the right steps in doing estate planning. There are different reasons for each individual who has realized the need of drafting a will. You can click here for more facts about estate planning and learn more about it now! No matter what reasons you have for drafting your will, what matters most at the end of the day is to have some peace of mind if you die at any minute and leave your loved ones behind.
Focusing your efforts on estate planning has become one action that some people do so they can avoid probate. Though this may be a relevant reason, it is not always the most important aspect of arranging your will. Despite the fact that some probates are expensive, there are some in some countries and areas that do not have them costly. Of course, it does cost money, but usually, you will just be spending a few thousands. How severe your probates rate will be depend on your assets. With probates, the probate meter will certainly go up if your assets are the more complicated type that can range from oil leases to fractional interests in real estate, closely held family businesses, partnerships, and many more. The more states or areas you own these assets, again, your probate meter will surely go up. Owning a different property in different states imply that you will need a good attorney in each state. Meanwhile, your probate meter can go down if you will just be dealing with simple assets like your car, house, CDs, and so on.
Another benefit of doing estate planning is to save some money on your taxes. Having a trust does not always mean being able to save on every taxes that you have to take care of. Though single individuals cannot save on their estate taxes, married couples can benefit more from it. A revocable trust is what most married couples should have that will later on be split into two if one of either spouse will die. The splitting of trust is significant so that there will be two exemptions when the couple will be applying for an estate tax. The first exemption of the trust takes place during the passing of the first spouse and the second exemption of the trust will be when the surviving spouse dies.
If you want to know more about estate planning and its ins and outs, always seek out some advice from the professionals before you start drafting your own will.