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The death of a loved one can be an emotional, stressful and confusing time for everyone. Estate planning is about a person, what someone wants to happen after they die and how to distribute assets. It places legal guidelines on distributing property so that the family does not have to go through the courts to fight over it. It is essential for several reasons.

 

Allows choosing a guardian for minors

Estate planning allows someone to choose a guardian for the minor children, name a fiduciary who will handle finances if you become incapacitated, and create a health care directive that spells out one’s wishes in the event of an extended illness or injury.

 

Distribution of assets

Even if someone isn’t married or doesn’t have children, the person likely has parents, siblings, and other close family members who might be affected by your passing. Without a will, state law determines this distribution, which often results in arguments among family members because they feel that they have been left out or received too little.

Estate planning minimizes the potential for disputes by ensuring that all of the assets are left to the people the person wants to inherit them. It also prevents unnecessary taxation and litigation from contesting wills and other documents.

 

Helps organize finances

A person’s priority is to make sure that any outstanding debts are paid off. If there is no money to pay them off, one has to file for bankruptcy. The next step is to contact creditors and let them know that the person has passed away and where they can send their information or their payments.

After doing this, the person can get started on the process of going over the will and seeing if it needs to be updated or changed at all.

 

Gives a sense of security

It gives one a sense of security. As a person plans for the future, they begin to feel confident that what’s most important — their loved ones and the causes that matter — will be taken care of. It gives the loved ones a sense of security.

They may worry about how they’ll continue to live after one dies. But when they see how much thought and effort put into preparing for their future, they’ll feel better as they go forward. It allows everyone involved to understand and accept the person’s wishes.

The benefits of estate planning extend beyond legal boundaries. The intention behind estate planning is to avoid problems that could potentially be caused by a lack of planning. In other words, the probable outcome will occur if proper estate planning is enforced.