You have spent your life working hard to provide for your family and your descendants. You have planned appropriately and have saved the right amount of money. Now, you are in a position to pass this down to your heirs. Did you know that you might not even be allowed to give your money away without incurring a tax that could be as high as 50 percent? This is called the estate tax. Also known as the death tax, this is a tax that might even hit your life insurance benefit if you don’t plan correctly.
That is why it is important to work with a trained professional in the field of estate planning. There are a few benefits of estate planning that you need to keep in mind.
You Can Provide For Your Family
The biggest benefit of estate planning is that you can provide for your family. You have a manner in which you want your assets to be divided. Maybe you want your children to divide everything equally. Maybe one of your children needs more than the rest. Regardless, you want to make sure that your heirs are taken care of.
If you don’t have an estate plan in place, then your family is going to end up with less. Furthermore, it will take them longer to get the money. This could leave them in limbo, wondering how they are going to pay final expenses, bills, and more. It is not rare for families to suffer an unexpected death only to be left in dire straits financially. Good estate planning can help you avoid this problem.
Keep Your Children Away from Child Protective Services
Sometimes, there is an unpleasant situation that arises following the death of a parent. Stop for a minute and ask yourself what would happen to your children if you were involved in a major car accident. Who is going to pick them up from school? Who is going to provide for them? Who is going to take over their care?
With proper estate planning, you can take care of this process from the start. If you don’t have an estate plan, this is left up to the courts. While this is being worked out, your kids might end up in the hands of Child Protective Services. You don’t want this to happen to your children. This is where estate planning can be helpful.
Reduce Your Expenses with Estate Planning
If you don’t have a good estate plan, a lot of your money is going to end up going to attorney fees and court costs. You don’t want this to happen. If you die and your estate is not properly set up, the courts are forced to divide your assets. This is an expensive process that might involve children, business assets, and more. This is called probate court and it can get expensive. In states such as Florida, all wills have to go through probate so you need better asset protection “vehicles” like a trust. Even for a modest estate, the costs might be very high. Additionally, each state determines what is reasonable and for Florida that is up to 3% of your estate if the value is over $75,000. These numbers do change from time to time. That is money that could have been used by your family and your children that is covering the costs of court instead. Don’t let this happen. Also during probate, your assets are tied up so the beneficiaries can’t get them.
Reduce Your Estate Taxes with Professional Strategies
Finally, proper estate planning can also help you reduce your taxes. Remember that every dollar that you have to pay in taxes is one fewer dollar that your family can use to cover other expenses such as school, housing, and healthcare. The good news is that there are plenty of ways that you can avoid the estate tax if you are willing to work with a trained professional who can use tax reduction strategies. That way, as much of your money ends up in the hands of your family. You simply need to start planning sooner rather than later. Do not wait until it is too late.
Work with a Trained Estate Planning Attorney
If you are in Florida and want to understand more about estate planning visit The Finity Law Firm’s website. When you take the time to work with a trained attorney, you are investing in the future of your loved ones. Make sure that your family ends up with as much of their inheritance as possible by planning for the future.
Make sure to understand the entire estate planning process by working with a lawfirm like the Finity Law Firm, a Florida firm.
Hey, I am Raj. I am the owner and content publisher at Financenize. I have completed my education till intermediate school and after that turn to a full-time blogger and content writer. I usually share the quality information for the readers in Financenize, which helps the small business, individuals and entrepreneurs and the information I share makes their task more manageable. I am expert in analyzing the current situation and deliver a profitable period to the extent. You can find me on various social media handles online.