WHAT PRINCE AND ABRAHAM LINCOLN CAN TEACH US ABOUT REGRET

For many people, estate planning is not something that they want to think about. Ignoring problems never makes them easier. And I hate to say it, but I have seen people delay in creating these sorts of things and they experience something catastrophic. And in other cases, with such a high quantity of blended families, the custodial parent cannot dictate the future of her/his kids if something were to happen. However, creating a will, estate plan, or trust can provide peace of mind, protect your loved ones, and ensure your assets are distributed according to your wishes. I don’t know about you, but I consider my children my greatest asset. Here are 12 reasons why you should consider creating an estate plan:

1. Control over your assets
One of the primary reasons to create an estate plan is to have control over your assets. By creating a will or trust, you can specify how your assets will be distributed after your death. This gives you greater control over your estate and ensures that your wishes are carried out.

2. Protect your family
Estate planning can help protect your family’s financial future. By creating an estate plan, you can provide for your family’s needs in the event of your death. This can include provisions for your spouse, children, and other family members.

3. Avoid probate
For those of us who have been through the probate process, we understand that “pain in the butt” doesn’t come close to describing the process. Probate is the legal process that occurs after someone dies. It involves validating a will, paying off any debts, and distributing the remaining assets to beneficiaries. Probate can be costly, time-consuming, and stressful for your loved ones. However, a properly structured estate plan can help you avoid probate altogether.

4. Minimize taxes
Estate planning can help minimize taxes on your assets. By creating an estate plan, you can ensure that your assets are distributed in a tax-efficient manner. This can help to reduce the tax burden on your beneficiaries and allow more of your wealth to pass on to them. Aretha Franklin died with an estimated $80,000,000 from music, licensing, and royalties. Nearly all of this estate was actually owned by the IRS, because she had tax liens, and multiple “IRS issues”. Even after death, the IRS is ruthless in their pursuit of tax debt.

5. Asset protection
Trusts can provide asset protection from creditors, lawsuits, and other potential threats. By creating a trust, you can protect your assets and ensure that they are used for their intended purpose. Prince died with a $156,000,000 estate. Because he didn’t have any of this setup, his estate ended up taking 6 years to settle amongst his six half-siblings. Generally speaking, the more money you have, the more people will want it.

6. Ensure your beneficiaries are taken care of
An estate plan allows you to provide for the needs of your beneficiaries. This can include provisions for minor children, disabled family members, or aging parents. By creating an estate plan, you can ensure that your loved ones are taken care of after your death. Not just taken care of monetarily. But you want the people you love to be cared for as deeply as you care for them. Only you know what people can do that.

7. Avoid family disputes
A clear and detailed estate plan can help prevent family disputes over inheritance and distribution of assets. By creating an estate plan, you can ensure that your assets are distributed according to your wishes, reducing the likelihood of family conflicts. As a financial advisor that deals with this stuff on a daily basis, the family conflicts are real, and they can get ugly. Spell things out so you don’t have to deal with Uncle Charlie that had a “handshake agreement” that he would receive X, Y, and Z. Sounds farfetched, but this is a reality that happens every day.

8. Provide for charities
A will, or trust can include provisions for charitable giving. This allows you to leave a legacy and support causes important to you. Many people want to leave money for their church or place of worship. Unless designated, that church or place of worship has no right under the law to claim anything, even if you and the pastor are BFF’s.

9. Protect your business
An estate plan can provide for the transfer of business ownership and assets to ensure the continued success of the business after your death. This can help to protect your business and your employees. I would also advise to spell out the systems that make your business successful. Not every beneficiary has the knowledge or acumen to run your business in the same way that made it successful in the first place. If you’re a franchise owner, you need to go back and look to see if corporate automatically gets your business back in the event of a death. Some structure it that way and it’s easy to overlook contractual language at the beginning when you’re so excited to open the doors. Compromises and alternative plans can be made…but not after your dead.

10. Protect your privacy
An estate plan can help keep your financial affairs private and confidential. This can help to protect your family’s privacy and avoid public scrutiny. If you are an heir or a Jr., Sr., or III than your family name is likely important to you. The more money you have the more people will gossip and be envious of the perceived lifestyle that you live. Don’t give them the power to tarnish the name of your children, grandchildren, or your business dealings.

11. Ensure a smooth transition of assets
An estate plan can help ensure a smooth transition of assets to your beneficiaries. This can help to minimize disruption and confusion and ensure that your wishes are carried out. The silver lining in death is that when you have these steps taken care of, your loved ones have a sense of just how much you loved them and you cared that they wouldn’t have a mess to clean up, which doubles down on the pain and loss they are already feeling.

12. Peace of mind
Perhaps the most important reason to create an estate plan is to provide yourself with peace of mind. Knowing that you have a well-crafted estate plan in place can provide you with the confidence that your loved ones will be taken care of and your wishes will be carried out.

In conclusion, creating a will, estate plan, or trust is an important step in ensuring that your assets are distributed according to your wishes, protecting your loved ones, and providing you with peace of mind. If you haven’t created an estate plan, consider speaking with an attorney or financial advisor to get started. Remember, there’s never going to be a perfect time to execute a plan that revolves around you dying. This doesn’t need to be a 1-time thing. Especially if you’re a business owner or if you inherit money, these types of things can be re-written and adjusted. None of us live forever, yet more than 2/3 of U.S. adults have no will, let alone a trust or estate plan. Not even Abraham Lincoln had a will. It’s never too late, until it’s too late. Hope for the best, plan for the worst. There are people who can walk you through it with empathy and understanding.

For more information or to ask the author any questions please email: Cort@TheHeroAdvocate.com