Three Big Reasons Why Estate Planning Is Important

You don’t have to be wealthy to begin working with an estate planning service in Des Moines, IA, but your first step in the process should be to consult a financial professional you know you can trust. Still unsure whether you even need to get your estate in order for the future? Here are three big reasons why estate planning is so important.

Ensures your assets will go to your chosen beneficiaries

If you own anything of value, then estate planning may be a good idea. While wealthy families are likely to seek estate planning, many middle-class families are also weighing the pros of having a plan in place for when something happens to the breadwinner. People from all walks of life—not just the super rich—can do well in the stock market, real estate and other types of investing. Investing, when done right and over the long term, creates a bevy of assets that you’ll eventually pass to your loved ones. But you must decide who gets what before you pass away.

A huge part of estate planning is willing your assets, including homes, stock portfolios, your belongings and more, to your heirs. If you don’t have an estate plan, it’ll be up to the courts to decides who gets what, which is a process that can take years and tear families apart. It’s better that you make the plans for your assets since you know your family better than any court official.

Prevents family squabbles over your wealth

Not making plans for your assets is bound to stir up family drama, whether it happens in a courtroom or in your home after your death. No one is safe from the fighting and yelling, not even siblings who have gotten along well all their lives. This is especially true when it comes to money and valuables not designated to any family member in particular. However, there is another reason why you should draw out an estate plan—in the event you become incapacitated or die, your estate plan will state who you’ve chosen to take control of your finances and assets.

What if you don’t designate someone? To further complicate things, there is always one person in the family who thinks they should be the one in charge of dividing up the inheritance. You can eliminate family messes simply by making your final wishes set in stone with help from an estate planning service in Des Moines, IA.

Reduces taxes for loved ones

Proper estate planning is the best way to protect your loved ones from the burden of taxes. Estate planning transfers assets to your heirs so they are not hit with high taxes, and perhaps none at all—this includes federal and state estate taxes as well as inheritance taxes. Talk to your estate planner or financial adviser about reducing the income tax your beneficiaries might have to pay, because without a plan, your heirs could wind up owing a lot to the IRS.

For the most trusted estate planning service in Des Moines, IA, get in touch with the team at Accounting & Tax Professionals, PLC.

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