When you have any assets or loved ones, you need to think about creating a will. This document outlines what you want to happen to your possessions when you pass away. This might not be something that you want to think about, but it can help your loved ones to get everything settled after you pass away.
Besides being able to name who gets what, there are other reasons why you might want to get your estate plan in place now. The circumstances of your life will dictate your priorities in your estate plan. Consider some of the following strategies:
You can minimize estate taxes if you know what you have and how it will be affected by Michigan’s probate laws. It is sometimes possible for people to gift their loved ones with annual sums of money within lifetime caps before they pass away so those left behind don’t have to pay high estate taxes. There are limits to what you can give per year to each person, so be sure you learn what the current limit is before proceeding.
You can include plans for your minor children in your estate plan. Guardianship and trusts are helpful for these situations. If you handle these matters now, your children likely will never have to go into the state’s care if something happens to you and their other parent.
Putting off creating your estate plan is a huge mistake. You never know when something will happen to you so it is best to take care of this matter now while you are in good condition to do so.