A: We can all come up with reasons to procrastinate and avoid doing what we should. Unfortunately, none of us has a crystal ball and we have no guarantee as to how many days we will have in this life. Procrastinating on creating an estate plan can have dire consequences and there are many reasons to avoid delaying the creation of a plan. Here are a few of those reasons:
- Reduce estate and income tax - Depending on the size of your estate, proper planning could cut your taxes by half or more.
2. Name guardians for your minor children – A properly done trust can define who you want as guardians for your children. Without this, the courts will have to select a guardian and they may not choose who you would have preferred.
3. Choose the circumstances of distributions - By holding assets in trust, you can protect assets from your beneficiaries' creditors and potential future ex-spouses. You can also mete out assets over time so your beneficiaries get maximum use, while minimizing the possibility that they squander the assets.
4. Make provisions for heirs with special needs – A trust can make sure your assets work for a special needs beneficiary, rather than disqualifying them from receiving government assistance.
If you have loved ones, you have a reason to create an estate plan…regardless of your age and without delay!
Contributed by MH Arrowhead, Phoenix, Prescott and Flagstaff Estate Planning Attorney and Partner David T. Eastman
About Morris Hall:
At Morris Hall, we have focused our legal practice on estate planning for over 40 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Cave Creek, Tucson, Prescott, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.