4 Reasons You Need An Estate Plan

How much time do you spend on planning a vacation? Days, weeks, or months? To make a trip perfect, people spend a significant amount of time in planning! If you are willing to take the time to carefully plan a vacation, wouldn’t it be smart to put that same thought and consideration into one of the most inevitable events that will take place in your life? A majority of the population does not have the basic estate planning documents which means most people are letting the government decide what happens to their assets and loved ones after they die! An estate plan will give you the peace of mind knowing that everything will be taken care of according to your wishes.

A misconception among people is that estate planning is only for the wealthy. They believe when there’s an estate, there is an estate plan. However, the reality is that if you own anything, or have any children, you should have an estate plan. 

Regardless of whether you have valuable real estate property, a large IRA, or a profitable business; an estate plan is a necessity for everyone. Not having a will or a trust can put make things a lot more difficult for your loved ones. The thought of dying isn’t something people think about on a daily basis, but it is necessary to start planning now because life is unpredictable and an estate plan will give you peace of mind knowing everything is taken care of.

Still thinking that you do not need an estate plan? Well, here are the top reasons that will convince you that an estate plan is needed for you!

You Might Need a Power of Attorney

Life is unpredictable, and no one knows what really is in store for them. Estate plans don’t just protect you when you’re dead, they can also protect you when you’re alive. Have you ever wondered what will happen if you fall into a coma or become incapable of making decisions for yourself? An estate plan would protect you in either of these situations.

An estate plan lets you appoint an individual who could make important decisions for you in case you become incapable of doing so. This is done through a document called a power of attorney. The individual you choose will make important financial decisions for you through a durable power of attorney and will be able to make medical decisions for you through a Utah advanced health care directive.

Avoiding Probate 

Avoiding probate is one of the most common reasons why having an estate plan is essential for every person. Nobody wants to go through the process as it is stressful and costly. Moreover, numerous horror stories surround it. In Utah, probate court is a necessity when someone dies owning any real estate or if they have assets valued at $100,000 or more.

Having a revocable living trust can help you in avoiding probate, and that is one of the many reasons why you need to have an estate plan. 

A Will Names Guardians for Your Minor Children

An estate plan ensures that your children will be raised by the person you choose in the event something happens to you before your child reaches the age of 18. Naming a guardian in the will is a smart way to protect the future of your children. If not, a random judge may decide who will be the guardians of your children.

Minimizing Estate Taxes

Another reason that makes it essential to have an estate plan is the minimizing of estate taxes. A significant portion of the wealth is lost during the process of transferring wealth to the beneficiaries. An estate plan addresses the problem and minimizes the estate taxes. 

Having an estate plan is essential if you want to keep yourself self in unpredictable situations and it avoids creating a mess for your loved ones after you leave the world. The stress and depression can make life very difficult for your loved ones, and that should be the most important reason for you to have an estate plan!