Estate planning is important regardless of age and financial status

February 27, 2013 (Press-News.org) Estate planning is important regardless of age and financial status

Article provided by John M. Gasidlo, Esq.
Visit us at http://www.ctestatelawyer.com

Dealing with the passing of a loved one is never easy. Unfortunately, for those without an estate plan, the loss of a life can also lead to financial uncertainty. From the rich and famous to the neighbor next door, there are many examples of the struggles that can occur when one dies without an estate plan.

John Denver, for example, died in a plane crash during a routine plane ride. His unexpected death left three children behind without a will outlining how to manage his $20 million estate. Another example was recently in the media of a woman in New York who lost her husband to a tragic bicycle accident and was left unsure of whether she could financially provide for her family. The couple had not completed their estate plan, and the new widow was left to determine how the assets that remained could be managed instead of being able to focus on grieving over the loss of her husband.

Stories like these are not uncommon. Legal professionals estimate that over fifty percent of adults in the United States do not have an estate plan. Those who die without a will leave the distribution of their assets up to the rules of the state they live in. Control over how the assets are distributed can be lost. This can be avoided by putting together an estate plan.

Estate planning basics

An estate plan can consist of many different documents, including a will, trust, power of attorney and living will or medical power of attorney. As illustrated above, it is important for everyone to have an estate plan, regardless of their net worth or age.

Estate plans offer families and loved ones a type of roadmap. The plan provides instructions on how property and other assets should be managed. There are various ways to distribute property, and a legal professional can help devise a plan that works best for each individual's situation.

Estate plans can also help individuals decide if assets should be distributed prior to death. This allows one to reduce his or her taxable estate and cut down on the amount that is taxed when transferred at death.

Laws regarding estate taxation often change. As a result, it is wise to seek the counsel of an experienced estate planning attorney to discuss your situation and better ensure your estate plan meets your needs.