The focus for many people at the end of the year is on the holiday. After all, it is a time to take time away from work and enjoy the company of family. For others, it is a time to maximize opportunities to reduce ones tax burden in anticipation of the New Year. While tax planning is important when it comes to creating and revising ones estate plan, it is important to not lose sight of non-tax benefits of estate planning.
This post will highlight a few of those benefits.
Taking care of beneficiaries Ultimately, the goal of any estate plan is to leave a legacy for those you leave behind. Because of that, estate planning can include the creation of a trust to assist in preserving and distributing the proceeds of an insurance policy. After all, some beneficiaries must be protected from themselves after inheriting a large sum of money.
Naming guardians In the event something happens to you, and you are no longer able to care for your children or make decisions on their behalf, it is important to name a guardian. Naming caretakers (i.e. legal guardians) for your children is another critical non-tax benefit of estate planning.
Conservatorships In the same vein, you may want to name someone who can care for you or make decisions on your behalf in the event you are no longer able to do so. A conservatorship can legalize such a relationship so that your appointed designee can care for you make important decisions if you are not able.
If you have questions about non-tax benefits, an experienced estate planning attorney can help.