A common mistake in estate planning is thinking that you’re too young to have one. However, the benefits of early estate planning can’t be understated. The truth is that creating a plan for your estate goes beyond your assets. It’s never too early to start thinking about the future, and these are some of our top reasons for creating an estate plan now instead of putting it off.
Caring for Minor Children
If you have children, your estate plan can include plans for caring for your children in the event of an unexpected death. You can designate a guardian and set up a trust for your children to ensure that they’ll always be cared for under an agreed upon plan.
Protecting Loved Ones
Your estate plan can include plans to provide for your loved ones. Part of your plan may include a life insurance policy and beneficiary designations for bank accounts or investments. When you have a plan in place, there’s no question as to how you want your assets to be distributed and to whom.
Reduce Tax Burden
Although there is no estate tax in Arkansas, your estate may be required to pay other types of state or federal taxes such as income tax or capital gains tax. Additionally, estates over a certain amount may be subject to federal estate taxes. Include assets to cover taxes in your estate plan to reduce the burden on your heirs.
Plans in the Event of Incapacitation
An estate plan doesn’t just come into effect after death; estate plans can also include plans for incapacitation. A health care directive or power of attorney allows you to dictate your medical decisions if you aren’t able to make them yourself.
Minimize Family Conflict
By writing a will, creating trusts, and naming beneficiaries on various accounts, you can avoid stress and conflict among your family and loved ones. The ability to outline exactly how you want your assets to be handled prevents questions about the distribution of your estate.
Reduce the Impact of Probate
When someone dies without a will in Arkansas, his or her assets must go through probate. The probate process can be long, complex, and costly – and that’s when things go smoothly. Many problems can arise when an estate goes through probate, but creating a solid estate plan can reduce the impact of probate and keep your estate intact.
Maintain Flexibility
Most components of an estate plan can be easily changed, leaving you with the flexibility to adapt your plan as circumstances change. Your initial estate plan may no longer be relevant after a major life event, or you might need to change beneficiaries. Keep in mind that an early estate plan is a good start, but it can always be changed as needed.
Discuss Your Estate Planning Needs Today
If you need guidance on starting an estate plan, an estate planning attorney can help. At L. Jennings Law, we help our Arkansas clients create different estate plans that suit each unique situation. We take the time to help through the process from start to finish, and if you’re ready to get started, contact the law team of L. Jennings Law today.
