Not everyone needs a million dollars to have a reason to create an estate plan. Other reasons to make sure you have an estate plan in place include having children/grandchildren, a recent divorce, owning a business, or if you expect to receive an inheritance or large sum of money. Here are some common reasons to do estate planning:
- Appointing an individual to handle your financial affairs in the event you become incapacitated or pass away.
- Avoidance of probate. Nobody wants the time and expense involved in probate. In certain situations, probate is required, but you may be able to bypass it with the proper estate plan in place.
- If you are in a second marriage and you pass away first, be sure your children are protected. Estate planning for blended families may be complex and challenging. Using an experienced estate planning attorney can streamline the process and be sure your assets are preserved and distributed to your intended beneficiaries.
- Protect assets inherited by your beneficiaries from legal claims. With correct planning you can be sure your assets are inherited by the beneficiaries you choose, not ex-spouses, creditors, the IRS, in-laws, etc.
- For beneficiaries who are not capable of handling an inheritance responsibly, have not met certain educational expectations you have for them, or are just financially inexperienced, you may include specific conditions and rewards in your estate planning.
- Plan and provide for special needs beneficiaries. Precise planning is needed to avoid the possible loss of governmental benefits.