Where do you want your assets to go, when you think of your loved ones?
Estate planning can be a comfort to you but is also a gift of peace of mind to your family and may be a good way to begin the New Year, according to the Brainerd Dispatch in “Give the gift of estate planning to loved ones this holiday season.” The article describes how stress and guilt for the family can be alleviated just by having a good estate plan in place.
Your estate plan will provide your family with clear directions on where you want your assets to go when you have passed, but that's just for starters. They will be dealing with many moving parts when you pass: funeral arrangements, notifying family members and grief, which can be overwhelming.
If you don't have a will or haven't done any planning, the process for your family to gain access to your assets becomes extremely problematic. The process is called probate, and it can take months and cost a great deal to unlock real estate ownership, account information or other assets for your spouse, children, and grandchildren.
There's also no way to ensure that your assets will be distributed as you wanted if you do not have a will or an estate plan. Let's say you have a non-traditional family. You've lived with your partner for decades, even raised children together, but never married. Your partner and your children may find themselves completely without any voice in your estate, and no right to any assets. Without a will, the state's laws will determine who receives your assets, and that may be a sibling or a parent, if still living.
Your estate plan becomes your legacy, and it's not just for family members. If there are causes or organizations that have meaning for you, they can be included in your estate plan. Lifetime giving or giving “with warm hands” is rewarding, because you get to see the impact of your generosity. However, you can use an estate plan to make a gift to an organization, which serves a dual purpose. It decreases the value of your estate and can lessen the tax burden of your estate, giving your family more money.
There are many ways to make planned giving part of your estate. Donor-advised funds are increasingly popular, or you may want to use a charitable trust or fund a scholarship. Your estate planning attorney will be able to help you determine the best way to structure your giving.
We have worked with families of all different types and can help you create an estate plan that works best for your family. Do talk with your family members to make sure they know that you have put a plan into place. If it helps, we can meet with your entire family to ensure that everyone understands why you made the decisions you did and ensure that the family understands that your estate plan is a gift from the heart.
Reference: Brainerd Dispatch (Dec. 8, 2018) “Give the gift of estate planning to loved ones this holiday season”