If you sold your company for 21 billion, like in this case, you should have already had an estate plan.
But let’s face it, most people don’t have the luxury or selling out for that much money, and the thought process of starting an estate plan doesn’t start until the moment business picks up, you acquire an asset like real estate, health becomes an issue, or things just start to get dicey among family members.
When Do You Need to Start Estate Planning?
Many people might not think that an estate plan is necessary for them, but there are many reasons why you should meet with an estate planning agent right away before it is too late. The first benefit that you would undoubtedly get from an estate plan is the avoidance of a probate. Even if people don’t know what that term stands for, they are keen to never have it happen to them. News stories are often covered by TV channels that depict incidents in which probate has occurred and it would scare anyone out of their wits. Probate involves dealing with a dead individual’s estate and then starting off a process that legally decides who gets who. If you have an estate plan, your children will be provided for and this problem need never surface.
The larger the estate is the more taxes will be payable on it and most people want to prevent (as far as humanely possible) the loss of the entire estate to the payment of federal taxes. If an estate plan is in place, the estate will remain in safe hands and there will no verifiable risk of losing it if the successors are responsible. If married couples take out an estate plan they can open a trust to avoid paying taxes on the property. The inheritance tax will be withered away to a small amount if a living trust exists and so will the estate tax. Many people think that an estate plan will make their will clear and will prevent family disputes and legal battles once the owner is dead. A lot of time and money is wasted in estate handling after the owner dies because the person in question did not take the time to make an estate plan.
If you think you need asset protection in the long run (including in the event of your death), then again an estate plan is the solution you are looking for. Unforeseen creditors that always seem to pop up from nowhere will not be able to put a dent on the value of your property if an estate plan exists. You can also prevent lawsuits if all your assets have been removed from the value of the estate and a proper will is drafted. An attorney who specializes in estate planning will also be able to help you draw out a financial plan to keep your money in check.