Estate planning is an important function in the life of any adult in Wilmington North Carolina. Estate planning involves anticipating and arranging for the management and disposal of a person’s estate during the person’s life and at and after death. Good estate planning minimizes gift, estate, generation skipping transfer, and income tax that would negatively affect the value of an estate being passed on to heirs or other beneficiaries.
Estate planners are typically attorneys like John Peck Legacy Lawyers who serve clients throughout the Wilmington NC area with services include planning for incapacity as well as a process of reducing or eliminating uncertainties over the administration of a probate and maximizing the value of the estate by reducing taxes and other expenses.
The goal of estate planning is based upon the specific goals of the client, and may fairly simple or complex depending upon the client’s needs and wishes. When minor children are involved in the planning, guardians are often designated for minor children. In the case of elderly clients, Elder Law expertise is helpful. John Peck Legacy Lawyers also practice Elder Law in the Wilmington NC area.
Estate planning involves a litany of legal documents including a will, trusts, beneficiary designations, powers of appointment, all manners of property ownership, gifts, powers of attorney, including the durable financial power of attorney and the durable medical power of attorney. Estate planning often involves detailed financial aspects of a client and as such an attorney might involve an accounting or tax firm to work through intricate issues relating to relevant financial issues or taxes. In the case of a business owner, estate planning will usually involve business succession.
The importance of proper estate planning cannot be overstated, particularly if there are large assets and several beneficiaries involved. Here are a few of the important reasons to do estate planning.
Removes any Confusion about Who Inherits What
There are thousands of stories about people dying with no will or estate plan and the subsequent fights between family members continuing for years. During this time lawyer fees by the parties can consume much of the estate. With an estate plan who gets what is clear and there is no room for debating or arguments. You simply designate which heirs will receive what assets. This eliminates any infighting.
Cares for Young Children
Estate planning allows you to determine how your young children will be care for financially in the event of your untimely death. You get to plan out who their guardians will be before the children turn 18 and what financial arrangements will be made for them.
Minimizes Taxes for Heirs
The primary goal of good estate planning is to financially protect the ones you love and want to care for after you are gone. When assets are transferred to loved ones, there is usually a big tax burden placed on those assets. Good estate planning works to significantly reduce or even eliminate the taxes associated with transferring assets to heirs.