Estate planning is the process of making a plan for the management and distribution of your assets in the event of your death or incapacitation. It’s an important step that everyone should take, regardless of their age or financial situation. 

Five Reasons Why Estate Planning is Important

1. To protect your loved ones: If you don’t have an estate plan in place, the distribution of your assets will be determined by state law. This may not be in line with your wishes, and could result in your loved ones not receiving the assets you intended for them to receive. An estate plan allows you to specify exactly how you want your assets to be distributed. This ensures that your loved ones are taken care of as you intended.

2. To minimize time and stress: Missouri does not have an estate tax. Federal law currently does not look at estate taxes until your assets are over $12,900,000.00. A proper estate plan will ensure that  your loved ones receive the maximum amount possible from your estate. Further, an estate plan will make the probate process go smoothly.

3. To make your wishes known: An estate plan can include a variety of documents. These documents may include a will, trust, and/or a power of attorney. The power of attorney can address both financial and medical concerns. These documents allow you to specify your wishes for everything from the distribution of your assets to end-of-life care. Without an estate plan, your loved ones may be left to guess what were your wishes.

4. To appoint a guardian: If you have minor children, a simple will allows to appoint a guardian to care for them in the event of your death or incapacity. This ensures that your children will be raised in a way that aligns with your values and wishes.

5. To plan for incapacity: An estate plan should include a power of attorney, which allows you to appoint someone to manage your financial affairs and make medical decisions if you become incapacitated. 

This post focused on five reasons why estate planning is important. There are obviously many more reasons that you should have an estate plan in place. Estate planning is not something that should be put off until later in life. It’s important to start the estate planning process early. You should update your plan as needed. An up to date estate plan to ensures that your wishes are carried out and your loved ones are taken care of as you intend. An experienced estate planning attorney can help you create a plan that meets your unique needs and goals.

Contact Us for Help with Your Estate Planning Needs

If you need legal assistance, or for further information about an estate planning need, please contact us or call Kennedy, Kennedy, Robbins & Yarbro, LC, at (573) 686-2459. Our commitment is to earn your confidence by answering all questions and providing quality representation.