When you dedicate so much of your time and energy to working hard and building wealth, it’s essential that you take some time to undertake estate planning as well. While the thought of it may make you think that it is tricky, it’s important to consider legacy planning because you want to make sure everything you’ve worked so hard for goes to those you care about or is utilised in a way that you would like. Still not convinced? Well, let’s look at some of the most important reasons why estate planning is needed:
- Protects your beneficiaries
It’s not uncommon to have family disputes after one passes away over the assets such as property that are left behind. As tragic as it sounds, things like these can get ugly and instead of getting the space to grieve properly, family members are left to struggle with lawsuits that drag on for years and cost a lot. Instead, if you undertake estate planning, you get to decide who gets what – whether that is a house, valuable art, stocks, your business, retirement accounts, life insurance money, etc. The main essence of estate planning or legacy planning is to decide who inherits what after you are no longer around. And hence, this is an integral part of investment management as well.
- Safeguards your children
Estate planning isn’t only about financial logistics. If you are a young parent with children who still have years before they reach 18, then you also need to decide who will take care of them in case the worst happens to you and your partner. A part of estate planning also involves naming your children’s guardians and making sure they are well taken care of. In case you fail to do this, the court will make this decision and your children may not necessarily end up in the best care.
- Looks after your needs
Estate planning looks after you as well and can come in use even when you are alive. For instance, it includes important things such as a healthcare proxy and a power of attorney. So, in case you are incapacitated and cannot communicate the kind of medical treatment or decisions you’d like to be made for you, your healthcare proxy, a person you trust and have chosen, will do that on your behalf.
- Fulfils your philanthropic goals
For you, leaving behind your legacy may not just mean making sure your family is looked after. If you have philanthropic goals and support charities for various things such as education for children at risk, hunger and poverty, LGBTQ+ rights, women impacted by domestic abuse, etc., and want to leave behind a chunk of your money to continue supporting these, then estate planning is crucial.
All these reasons and more are why you should look into hiring an estate planning attorney or seek estate planning services. In the absence of estate planning, you leave all crucial decisions up to the court of law, whether that is who gets the wealth you’ve worked so hard to build or who gets to take care of your children.