Why you should create an estate plan

A comprehensive estate plan is the best way to protect your assets while providing for your loved ones. Many Americans still do not have a comprehensive estate plan. The benefits of creating a comprehensive estate can motivate you to start. The Benefits of an Estate PlanCreating a comprehensive estate is an investment for you, your family, and your future. The benefits of having an estate plan in place are numerous, including:Avoiding Probate:

A well-crafted estate plan can help your assets bypass the lengthy and expensive probate process. Estate planning strategies and tools can be used to transfer assets directly to beneficiaries without the need for court intervention. This saves time, money and stress to your loved ones at a difficult time. A revocable trust, for example, allows assets to bypass the public, often contentious probate procedure, ensuring your loved ones receive these assets quickly after your death. The same trust can be used for other purposes, including incapacity planning, staggering the distribution of an inheritance, and protecting assets designated for minor children.

Asset Protection:

1. Estate planning offers protection for your assets from creditors, lawsuits, and even irresponsible beneficiaries. Trusts and LLCs are tools that can protect your wealth for your heirs. An irrevocable trust, for example, can protect your family’s assets from creditors. Tax Avoidance: A key goal of estate planning is to minimize the estate tax. Tax-efficient strategies such as lifetime gifts and the creation of the right trust can help you reduce the tax burden. This ensures that your beneficiaries receive more of your wealth. Advanced planning lets you take full advantage of tax exemptions and deductions, maximizing the inheritance your loved ones receive.
2. Protecting Minor Children: If you have young children, an estate plan is crucial to ensure that they are cared for according to your wishes and that they are financially secure if something happens to you. In your Last Will & Testament, you can name a guardian who will raise your children in the event of your death. You can also create a testamentary estate trust to manage your children’s inheritance until they are adults, providing stability and security. A revocable living trust can also be used while you are alive to ensure that someone of your choosing has access to funds for your children in the event of your incapacity.
3. Planning for Incapacity: Estate planning is not just about what happens after you pass away. It also addresses the situation if you become incompetent. You can designate someone else to make financial and medical decisions for you by including advance directives such as a Healthcare Power of Attorney or a Living Will. This will ensure that your wishes are respected, and lessen the burden on your family. A revocable living trust can also allow for a seamless transition of control over your assets if you become unable to manage them.
4. Supporting Charitable Causes: If philanthropy is important to you, an estate plan allows you to incorporate charitable giving into your legacy by establishing charitable trusts, donor-advised funds, or include specific bequests in your Will. This will ensure that your charitable goals are met, and it can also provide tax advantages to your estate. Charitable remainder trusts, for example, allow you to support your favorite causes while also providing income to your beneficiaries during their lifetimes.
5. Business Succession Planning: For business owners, an estate plan is essential for ensuring a smooth transition of your business. You can outline the ownership transfer and designate successors, which will preserve the value of your company and provide stability for your employees. For more information, join us at an upcoming FREE seminar. Call
6. Frank & Kraft or
7. (317) 684-500 for an appointment with an experienced Indianapolis estate planner. Read More!

Latest Posts by Paul A. Kraft Estate Planning Attorney

(see all)