How Does Estate Planning Protect Assets?

Most people work hard their entire lives to build wealth and assets over time. They break their backs, work long hours, and put their money into valuable assets like land and properties. However, we won’t be able to consume everything we earn in our lifetime, and a time will come when what we have will eventually be transferred to the next generation. Responsible heads of families are aware of this fact and make sure that they make appropriate arrangements beforehand. They take steps to ensure that their properties remain safe from all forms of excessive taxation and that the fruits of their hard work go towards their family members rather than the government. This is where estate planning becomes crucial, and you should hire an estate planning attorney near me in Maryland to get the job done. But first, it is best to learn more about how to protect your assets with estate planning.

What is an Estate Plan? When Should You Get One?

Estate planning is crucial for any individual who owns certain assets. It does not matter whether you own a little or a lot of assets, as long as you have assets on your balance sheet, you should consider making an estate plan. All of us eventually have to say goodbye to this world, and hence, it is best to have a plan as to what happens to your wealth afterward. This is where estate planning plays a crucial part. An estate plan determines what happens to your assets once you pass away.

According to Investopedia, with the help of a credible estate planning attorney near me in Maryland, you can devise an adequate estate plan to ensure your assets are properly managed, protected, and eventually distributed after death. An estate plan can also include clauses for when the estate’s owner may become incapacitated and unable to make further decisions.

What are the Six Basic Steps to the Estate Planning Process?

As someone considering entering the estate planning process, this section will give you a good understanding of the basics of estate planning. According to the Morning Star, there are some basic steps that you need to take into account in the following paragraphs. Following is our iteration of six basic steps that are vital to an effective estate planning process.

An Excellent Attorney: The first step to good estate planning is having a reliable, qualified, and experienced attorney. You don’t want to go into estate planning without an expert attorney who you can trust. Jay Horowitz provides you with experienced, trusted attorney services in Maryland.

Know Your Assets: Before you meet your attorney, it is a good idea to list all your assets. Make an assessment of your assets, debts, and their corresponding financial value. At some point, your attorney will have you make a thorough list, but it is always better to be prepared in advance.

Determine Your Trusted Individuals: Ask yourself, who do you trust to carry out your wishes in case you pass away or become incapacitated? You can have just one trusted person take on all the responsibility or divide it among more than one person.

Understand the Documentation: Take an active interest in the paperwork. Ensure you know what your ‘Last Will’ is and how it differs from a ‘Living Will,’ etc. Such nitty-gritty is essential to know.

Store and Manage Documents: Once you are done with your paperwork, storing them away in a safe place is a good idea. However, you should ensure that these documents remain accessible to your loved ones when the time comes. Storing them away ‘too safely’ might hinder putting your estate plan into action.

Update and Maintain Estate Plan: Lastly, once you have created your estate plan, keep it updated according to your changing circumstances. Revise your documents if there is a change in financial or family status, etc., to avoid confusion in the future.

The Benefits of Estate Planning

Estate planning brings at least four major benefits. We have listed a summary below.

Beneficiary Protection: The first thing an estate plan does is protect those who benefit from the assets you leave behind. Without estate planning, the courts may need to decide what happens to your properties, which may not correspond with your wishes as to who should receive your assets. Hence, estate planning can protect your beneficiaries.

Seamless and Hassle-free: As mentioned, the absence of estate planning can drag matters into court. It can cause serious strife within families and may cause fights and elongated court battles. So, if you are concerned about your family’s well-being, estate planning can be very helpful. 

Protects Young Children: In case a parent dies young, smaller children need even more care than ever. A good estate plan will include clauses and conditions that ensure your children have the right protections in place in case of such a terrible occurrence.

Save Your Heirs from Taxes: Estate planning allows people to safeguard their heirs from government taxes on the assets left behind. A good estate plan will ensure that you only pay the lowest possible tax to the government so that the biggest portion of the pie goes to the people you care about.

Find the Best Estate Planning Attorney Near Me in Maryland

So, if you are considering estate planning, Jay Horowitz’s Law Firm is available to help you. Mr. Horowitz has experience in creating excellent, customized documents for you.  He will guide you through the process every step of the way, ensuring that he develops the most appropriate estate plan for you and your loved ones. So, do not hesitate to reach out to us today. We will be more than eager to entertain and listen to your requirements!