Having an estate plan is crucial for individuals who want to make sure their wishes are followed after they pass away. Without a legally binding estate plan, Michigan state laws will likely determine the fate of your assets, property, and even the guardianship of your minor children. For many people, this is reason enough to create an estate plan; however, others may need more reasons to motivate them to get started. Here are three benefits of estate planning that should not be overlooked:
- Save cost and time during estate administration: estates that do not have plans will very likely need to undergo probate, whereas those that are prepared in advance can either avoid this process or plan for it.
- Prevent family drama: the settlement of an estate is a breeding ground for family turmoil. A clear-cut estate plan leaves less room for debate and dissent, giving people clear guidance into what the deceased truly wanted.
- Possible tax benefits: depending on the size of the estate, and the types of assets therein, estate planning could also have sizeable benefits in terms of taxes. Trusts, charitable donations, and advance gifting could be options to those who are concerned about taxes, all of which will be discussed during the estate planning process.
A final benefit is that estate plans allow you to choose who plays key roles, like executor and power of attorney. Picking the right people for these roles will help to ensure that wishes are followed and family harmony is maintained. To start estate planning, the first step is to contact a Michigan estate planning attorney.