What Are the Benefits of Early Estate Planning?

Estate planning is something that many people prefer not to think about. As trusted El Paso estate planning lawyers, we have many years of experience in guiding individuals through the process and explain why it’s never too early to start estate planning and what the benefits are.

Advice from an El Paso Estate Planning Lawyer: The Benefits of Early Estate Planning

Provides Valuable Protection

A proper estate plan can be far-reaching and include not only a will but potentially also trusts and power of attorney. This provides you with assurance that your assets will be distributed exactly how you want and that there will be no legal complications. It also ensures that your estate is being considered in its entirety rather than piecemeal so you can check that the final outcome delivers what you want.

Minimizes Taxes

Taxes in Texas are much lower than some other states, but that doesn’t mean that tax planning is redundant. Federal taxes will still apply if you exceed the threshold. This could include federal estate tax or federal gift taxes on transfers that occur during your lifetime.

Estate planning will consider whether your assets are likely to exceed the threshold and will take into account any gifting you’d like to do. Planning ahead ensures that you don’t fall foul of tax laws and that you can minimize any tax liability that may fall due.

Covers Incapacity

No one wants to think about being incapacitated, but the reality is that life is unpredictable. Accident or illness can occur at any age which could leave you unable to manage your affairs. A comprehensive estate plan will cover what happens in the event of you becoming incapacitated. Documents such as a durable power of attorney allow you to choose someone to manage your affairs if you are unable to do so.

This doesn’t mean that you have to permanently hand over all control to another person. A durable power of attorney can be used as a temporary measure. This can provide reassurance that someone you trust will be making decisions while you are incapacitated. Proper estate planning covers all eventualities so that you are never left unprotected.

Includes All Assets

We now live in a digital world and that means estate planning is more complex. It’s no longer just about distributing property, possessions, and money as alternative assets need to be considered too.

By starting your estate planning early you can include all of your assets that might otherwise be missed. Digital ownership is more complex and rights don’t always transfer on death. Estate planning will allow you to check what will happen to your digital assets when you die and put any necessary authorizations in place.

Protects Dependents

If you have children who are still minors, or any other financial dependents, estate planning is even more vital. This is because it will allow you to leave clear plans for your children’s future care and appoint someone to manage their inheritance. Without this in place the courts will appoint a legal guardian in the event of your demise.

To get advice about estate planning and how it could work for you, get in touch with us here at Townsend Allala Coulter & Kludt in Truth or Consequences, NM or El Paso, TX.

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