Some asset owners in Florida plan to leave huge financial windfalls behind for their offspring. Meanwhile, others intend to leave behind smaller monetary accounts. Either way, estate planning is critical, as it will allow the asset owners greater control, privacy and security of their legacies. Here are a few major benefits of estate planning.
First, people who have too many assets will end up paying estate taxes to their estates and possibly even federal taxes based on how valuable their accounts are. Probate fees might also be assigned. For this reason, engaging in estate planning with an attorney is a smart move for reducing one's tax liability and probate fees.
Second, creating an estate plan is essential for protecting one's assets. For example, through estate planning, people can safeguard their assets from the process of spend down, which involves reducing their assets so that they can qualify for Medicaid when they need to enter nursing homes. The more that people protect their assets in these situations, the more that their loved ones who are intended to be future beneficiaries will be protected financially as well.
Finally, estate planning enables individuals in Florida to control and manage their assets. The process of creating a will or trust helps to alleviate fear of the future by guaranteeing that a person's final wishes concerning asset distribution will be upheld. An attorney can walk an asset owner through each step of planning an estate, ensuring that his or her wishes and best interests are protected each step of the way.
Source: forbes.com, "The 3 Reasons Why People Do Estate Planning", Joel Johnson, May 21, 2018