While no one likes to think about their eventual death, it is something that will come to pass. When it occurs, you want to ensure that you have a properly designed estate plan or will. 

An estate plan can help transfer your assets to your beneficiaries and potentially avoid a long probate process. It can help reduce confusion and the chance for arguments among inheritors during what will likely be an emotionally stressful time. 

What Is Estate Planning?

Regardless of how rich or poor we may be, everyone has an estate. An estate can consist of bank accounts, homes or cars, life insurance, and personal possessions. Each of these items must be transferred to an inheritor upon your death. 

An estate plan designates who is to receive each asset and when it is to be transferred. It can also include instructions for your care and financial affairs if you become incapacitated before you die. 

If you own a business, having a succession plan in place is particularly important. The plan can designate who will take over the business, as well as how it will be managed. 

Estate planning is helpful for minimizing taxes, court costs, and unnecessary legal fees that arise if there is no direction given for the distribution of your assets upon your death.

What Are the Benefits of Estate Planning?

There are numerous benefits to estate planning, especially for those who have significant assets to pass on and/or who own businesses. Estate plans can assist with the following:

Providing for Your Family

Estate plans provide assets and income directly to your family upon your incapacity or death. If you are married, it can help ensure your spouse has enough money to provide for themselves and the rest of your family for a given amount of time. 

It also helps to eliminate questions of who inherits what, as the estate plan will outline exactly where assets go. This information can reduce the chances of arguments among beneficiaries, which can significantly decrease the emotional turmoil your family suffers during this stressful time.

Minimizing Expenses and Taxes

There are numerous tools that a qualified estate planning attorney can use to minimize the taxes collected on your estate, resulting in your beneficiaries keeping more of the money you set aside for them. 

An estate plan can create the possibility of not having assets going through probate, which can result in unnecessary legal costs for your heirs. If you have a charity whose cause is close to your heart, you can arrange to have assets transferred to those organizations at death. Frequently, the donation the charity receives will be tax deductible for your estate.

Preparing for Incapacity

If you become mentally or physically incapacitated, an estate plan can outline your wishes regarding quality of life and who will make medical decisions on your behalf. 

You want to make sure you have appointed the appropriate person who will respect your decisions and implement them according to your wishes. When you’re ready for this conversation, our team can recommend numerous estate planning attorneys who can help you create an appropriate program for incapacity needs.

What Should I Do After I Have Set Up an Estate Plan?

Once you’ve set up an estate plan, it’s important to make sure that the ownership and beneficiaries of assets line up with your documents. 

For example, if you have life insurance policies or retirement accounts, you might need to alter the beneficiaries listed with them.  In addition, for non-qualified assets, you might need to change the ownership or add a transfer on death designation.  The Moxie team can work with you to help ensure this happens. 

Making the proper adjustments with your assets can help protect against wasted time, attorney’s fees, and taxes for your family later.

Be Prepared with an Estate Plan

Having an estate plan in place can provide reassurance to you and your beneficiaries that your assets will be properly transferred upon your death according to your wishes. When you work with Moxie Wealth, we’ll help you make sure that any documents related to your assets are kept up-to-date and in alignment with your estate plan. 

Our team works side-by-side with your estate planning attorney to ensure any names or titles are properly reflected in both your estate planning documents and investment or life insurance policies, and that your financial strategy properly supports the legacy you want to leave with your heirs. 

When you’re ready to discuss your strategy in more detail, we’re here to talk. Connect with our team today to schedule an introductory call.

Financial Professionals do not provide specific tax/legal advice and this information should not be considered as such.  You should always consult your tax/legal advisor regarding your own specific tax/legal situation.

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