Do you know how estate taxes might affect your legacy, and do you have the best strategies in place to minimize their impact? Estate planning is an essential venture for anyone who wants to minimize the financial burdens on their loved ones when passing along assets to future generations.
Therefore, an established estate planning services provider like Saddock Advisory can help fill in all the details when exploring your estate planning options. Our expert team can ensure that your plans are solid and beneficial, regardless of what changes the future brings.
So, if you are unclear about the specifics of estate planning – or whether you need to enlist estate planning services from an expert like Saddock Advisory – you can start your research by understanding the basic guidelines of what estate planning entails.
What is Estate Planning?
In its most basic terms, estate planning is making detailed blueprints of how an individual’s assets will be managed after they pass away.
This is a simplified definition, as estate planning considers many moving parts and both personal and financial factors to create a multi-pronged plan. For example, estate planning laws are always evolving and require continuous monitoring. This vigilance is crucial as it may dictate the taxes and other financial burdens that need to be minimized in the future.
In addition, there may be other, individualized elements of estate planning to consider. These include a business exit plan or inheritance plan, as well as family matters and decisions, like who will care for minor children.
When to Start Estate Planning
The answer to “when to start estate planning” is as soon as possible. Mainly financial advisors recommend starting estate planning as soon as you are a legal adult and start to accumulate income and wealth.
There are several reasons why estate planning should start early. For one thing, it provides a safety net in case of any scenario (as well as ample peace of mind.) It also protects your loved ones, and estate plans can always be adjusted or altered in the future as new life milestones are met, like the birth of a child.
The Benefits of Estate Plans
The benefits of estate plans are multi-faceted, and a sample of these advantages includes the following.
Minimizes taxes
A smart estate plan can help minimize future estate taxes by utilizing financial strategies, such as creating a trust or taking advantage of other tax-saving measures and opportunities. When performed properly, estate planning can minimize taxes for the individual or estate holder and, more importantly, the beneficiaries, who may have to pay taxes before any inheritances or assets are received.
Avoids conflict
Smart estate planning spells out all an individual’s wishes, meaning there is less conflict among family members in the event of death or incapacity.
Protects assets
Estate planning can also protect assets now, which in turn ensures that there is more to leave behind to loved ones in the future.
Avoids the probate process
No one wants to deal with an estate in probate, as it is a very time-consuming and lengthy process, which can also be costly. Smart estate planning can avoid probate by creating a trust or embracing other strategies that still spell out the individual’s wishes when it comes to the distribution of assets.
Protects the individual
With estate planning, you can plan for the possibility of being hindered by appointing a power of attorney to help make an individual’s decisions and wishes come to fruition in the advent of an emergency. This can include details like healthcare directives, plans for children and dependents, and other essential considerations.
Protects your loved ones
Arguably, the most important aspect of estate planning is that it protects your loved ones from having to pay hefty taxes on their inheritance and ensures that your assets are distributed to the people who matter most.
Provides a lifetime of peace of mind
The goal of estate planning is to account for any “what if” scenarios so that everyone in your immediate circle is protected and cared for in the event of any financial or personal emergency.
Start Your Estate Planning Journey with Saddock Advisory
Every estate planning venture starts with a conversation to understand all your options and to spell out the details of what’s most important for your future, and your loved ones’ future and Saddock Advisory can help.
Reach out to us today to start this all-important discussion. Our financial advisors can ensure protection for you and your loved ones, resulting in decades of peace of mind for everyone who matters most to you.
