You may have heard that you need to put together your estate plan. But do you know why it is so important? According to Pure Financial, how you do your estate plan can affect the quality of your life and the lives of those you leave behind.
The first issue is the management of your assets. You need to make sure of it if you become incapacitated, meaning you are not capable of managing your property and financial affairs, that someone will be able to use your assets to provide for you and to pay your bills. Also, good estate planning will address the management of your assets when you pass away, making sure that the right people are there to settle your estate and to do what needs to be done to distribute your assets for your loved ones.
The second issue that every estate plan needs to address is the preservation of your assets. You have worked a lifetime to accumulate your estate, and you want to pass as much of it as you can to your loved ones, which means you want to pay as little as possible in taxes and fees and costs. You want to take as much of what you have and make sure it gets to the people that you want to have it.
The third issue that needs to be addressed in every estate plan is the distribution of your assets. You want to make sure that the right people receive your property at the right time and in the right way.