Some young people think estate planning is only for seniors and the wealthy; however, it’s something every adult should do. The documents you create during the process, like a will or trust, can be used to settle asset disputes and secure your family’s future if you pass unexpectedly. Here’s why you should plan early.
3 Reasons Young People Should Start Estate Planning
1. Avoid Disagreements
After you pass, grant your surviving loved ones direction by giving them a plan to follow. These clear sets of instructions dictate how you want your assets distributed. This will prevent your family from disagreeing over who gets what, helping them stay strong together after you’ve departed.
2. Reduce Taxes
The IRS places taxes on your estate when it’s transferred to your beneficiaries—this depends on the value of you what you own. However, there are valid ways to reduce your taxes, such as transferring some assets to your spouse or giving certain amounts as gifts. Work with an attorney as your estate grows to figure out what to move and where.
3. Protect Your Assets
Under federal law, some types of assets are untouchable to claims, such as your business’s equipment or clothing. You can secure other belongings that are vulnerable to lawsuits by transferring them to someone else. For example, if you were sued for a car crash but can’t pay for the damages, a judge may have your personal car seized instead. However, if its title was transferred to your business, it can’t be taken after you pass.
It’s best to start early even if you don’t have any cases against you. If you move assets immediately before or after a lawsuit, the court may view it as a fraudulent transfer and revoke it, turning it over to the plaintiff.
If you want to start estate planning, contact the team at Ng & Niebling in Honolulu, HI. These professionals have helped their Oahu clients get their affairs in order for over 40 years. They’ll walk you through every step of the process, from selecting beneficiaries to drafting a will. Call (808) 732-7788 to get more information about their services or schedule a free initial consultation.