This is a common question that comes up frequently among those who are unfamiliar with the benefits of good estate and retirement planning. Formulating how estate assets will be distributed requires forethought and careful consideration. It is a strategic plan of sorts that is intended to protect the assets and wealth and most importantly the family members and heirs of a person with an estate and assets. It even looks at certain charitable organizations that are chosen by those wishing to donate as part of an estate distribution. A comprehensive estate plan will consider a principles future wishes and needs if incapacitation, debilitating illness or injury ever becomes an issue. Listed below are several excellent reasons to establish a robust yet flexible plan going forward and to keep that plan updated and refreshed often.
· Determines asset distribution specifics upon the death of the principle
· Determines the circumstances under which assets will be distributed
· Determines personal care details and health care particulars
· Determines how assets will be managed and by whom if the principle were no longer able to do so in a meaningful way
It should also be noted that estate type plans involve far more than simply a will. While the will is an essential and key component there are several other documents that must be considered to ensure a total and compete package, as it were. Here are a few examples of other information, data and documents that often typically make up a greater estate related plan.
· Tax documents and tax considerations
· Financials including stock holdings and financial planning forms
· Business information such as corporate documents and accounting data
· Medical records and health care coverage
· Life insurance information and records
· Power of attorney documents
· Law firm and legal document details
Any estate related planning requires a fluid and dynamic approach to keeping all details and information recent and up-to-date. This is always a good idea as the unexpected can occur at virtually any time. Being prepared is always the best policy in this regard. Protecting a legacy and the well-being of future generations is at stake when putting a solid plan into place. Regardless of the size of an estate, large or small, it is recommended by experts in the field to have a plan implemented early on. Designating someone to manage assets if you become incapacitated is simply smart business. Preserving assets and wealth for beneficiaries and limiting the overall burden that estate taxes impose can provide for true piece of mind for families.
greater leverage and control
Another critical reason to have an estate plan established early is that absent a plan, it can be expected that a judge will likely appoint a third-party to manage an individual's personal health issues and asset management. This can create a situation where something known as intestate succession allows the state to distribute wealth according to certain established rules. In essence this results in an estate being distributed in a way that a principle may have not chosen. Detailed estate planning gives an individual far greater leverage and control in terms of who will inherit wealth, assets and personal belongings. If you are asking the question “why do I need estate planning,” then you likely do require some level of professional assistance in this regard. Silver Rock Partners is comprised of a dedicated team of estate planners and NY insurance advisors with years of experience in the industry. Call today to learn more.