Estate planning is the process of anticipating and arranging, during a person's life, for the management and disposal of that person's estate during the person's life and at and after death, while minimizing gift, estate, generation-skipping transfer, and income tax. There are several reasons that compel us to build an estate plan. Some of the reasons are as follows:
1) Designating who will manage your affairs if you become disabled and when you pass away. If you fail to do so, a court will decide for you not only who receives your wealth but who will make the distributions. You never know who the court will appoint. Keep control of your own destiny! To have more knowledge about the estate plan, have a look at lawbh.
2) Imposing discipline upon children or grandchildren who may not be capable or experienced in managing wealth. Make sure your children or grandchildren spend their inheritance wisely and protect their inheritance against inexperience and mismanagement by including specific conditions and rewards in your estate plan.
3) Preventing or discouraging challenges to your estate plan. Establishing a well-drafted and comprehensive Revocable Living Trust now makes it more difficult for objections when you are no longer around to speak for yourself.
4) Addressing different needs of different children. No two children are alike. Customized estate planning can assure that each child's personal needs are addressed in the manner you deem best.
5) Protecting children from a prior marriage if you pass away first. Second marriage planning can be complex and tricky. Expert legal guidance is needed to ensure your assets are preserved and your children of your first marriage will receive the proper share of their inheritance.
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