If it's been awhile since you dusted off your estate plan, now is the time to do it. You may think that estate planning is not important at this stage of your life or that your estate is too small to justify estate planning. But if you own a house, life insurance, a retirement account, or an interest in a closely held corporation or partnership, your estate could be larger than you think.
Failure to plan your estate not only increases your heirs' potential tax liability, but it also forces the state courts to divide your assets.
Without an estate plan in force, an impartial court will split up your assets, assign guardians for your children, and dictate all other details in handling your estate. Your involvement now is essential to your loved ones' futures.
| You choose... | ||
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With An Estate Plan |
Without An Estate Plan |
|
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Your assets... |
You decide who gets what. |
Asset are distributed according to applicable state law. |
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Your children... |
You choose the guardian. |
The court appoints a guardian. |
|
Your inheritance... |
You decide how and when beneficiaries receive their inheritance. |
Terms and timing set by law. |
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Your business... |
You decide how the family business is to continue. |
Forced sale or liquidation may cause financial loss and family hardship. |
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Your executor... |
You decide who will manage your estate. |
Court appoints an executor. |
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Your final expenses... |
You can reduce estate settlement costs. |
Costs may skyrocket due to administrative expenses and unnecessary taxes. |
