The most obvious, uncomfortable truth is that all people will die one day. Responsible adults want to make sure that their family is taken care of even after their death.
Nonetheless, estate planning is a somber topic many older adults don’t wish to discuss until it’s too late. If you are finally ready to have this discussion with your family, there are several benefits of estate planning you should be aware of.
Below, we’ll list the top five pros of estate planning to help you make the right decision.
1. You Can Provide for Your Family
Many hard-working individuals take immense pride in providing for their families. In fact, their worst fear is passing away suddenly and creating a large void for their immediate family to fill.
When you engage in early estate planning, you can put the steps in place to provide for your family financially after death. This involves setting up a life insurance policy and retirement plan.
This process also includes drafting a last will and testament that lists how your assets will be equally divided among your next of kin and other benefactors.
Having these steps laid out will make sure that your family has the resources to carry on without you.
2. You Can Keep Your Children Out of the System
It’s recommended to begin estate planning when you reach the age of 35, and no later than 40. If you still have young children at this point, you’ll need to define who they’ll live with if you were to suddenly pass away.
It can be disastrous if you were to suddenly pass away with young children without a clear idea of who they’ll live with. Starting the estate planning process will ultimately make sure that your children will stay away from protective services.
3. Minimize Your Expenses
If you’re attempting to save money for retirement, you’ll only be successful if you begin to save money on unnecessary costs. The truth of the matter is that it’s important to work hard and play later.
The choices you make now will significantly impact your future, especially if you’re already adding money to a 401K or retirement account.
Minimizing your expenses will naturally allow you to invest more money in your retirement account.
4. Reduce Taxes and Debts Immediately
If you have existing debt, you should work diligently in paying it off before you grow old. Debts can overshadow your assets and compromise the estate you leave behind to your family.
Also, reducing the amount you pay on yearly taxes will add more money to your estate when you finally pass away.
5. Make a Plan for Incapacity
Whether it’s mental or physical decline, you can’t foresee what will happen to you as you grow older. Just in case you are eventually diagnosed with dementia or suffer some type of life-threatening physical condition, you should have a long-term care plan in place on who will temporarily control your estate.
Take Advantage of These Benefits of Estate Planning
One of the major benefits of estate planning is that you can take care of your family after death. A core aspect of estate planning is making sure you have a solid life insurance policy. To learn more about our life insurance policies, contact Paradigm Life today.