If There Is No Estate Tax, Do You Still Need an Estate Plan

A common question we are asked is if there is no estate tax, is there still a need for an estate plan? If a person passes away without a will or trust, his or her estate assets are distributed according to what is known as intestate succession. As a result, “who gets what” follows strict guidelines, set by each state, with no regard to the actual emotional relationships between you, your spouse, your children, and members of your extended family. What you would have wanted is irrelevant to the state. Your assets must be distributed, and the state has devised a formula to do so.

Ensure Control Over Medical and Financial Decisions

Another reason you need an estate plan is to make sure that a person of your choosing has the authority to make medical and financial decisions on your behalf if you become incapacitated. Without your own plan, someone will petition the court to gain control over your assets and medical care. This could well be a person you would never have wanted to make important decisions like these for you. The result? You may not receive the level of medical care you would have wanted. Conversely, you might be subjected to medical procedures you would not have wanted to keep you alive in an end-of-life situation. Similarly, financial decisions might be made about the management of your assets that you would never have taken on your own.

Safeguard the Future of Your Minor Children

If you have minor children, you must also consider what will happen to them if something terrible happens to you and your spouse. An estate plan allows you to name people of your choosing—people you trust—to raise and care for your children if you cannot. Without a plan the court will decide who has control over your children. The court’s decision could lead to your children being raised in a place and manner you never would have wanted.

Protecting and Preserving Inheritances for Your Children

Your estate plan can also be designed to protect the inheritances of your children when they become adults. Your plan can protect their assets against remarriage, creditors, predators and other threats. In addition, your plan can pass your work ethic, values and sense of responsibility on to heirs, as well as help you leave a lasting legacy.

As you can see, the benefits of estate planning go far beyond minimizing estate taxes. Perhaps the greatest benefit of all is the peace of mind that comes from knowing you have a plan in place for the future. Contact us today to schedule an appointment to discuss what type of Estate Plan is right for you.