If you own several business properties and assets, dividing pieces of these among your children can be challenging. So, many tend to stray away from this responsibility to the last moment, which isn’t ideal since having no will or just merely randomly giving all your valuables is the height of irresponsibility. If you want to ensure the right people get to inherit your assets and property, you need to face this task.
The process of choosing who gets to inherit your assets or property when you pass on, while you’re still alive, is called proper estate planning. It allows you to decide which of your loved ones deserve to have a chunk of everything you’ve worked hard for — considerably helping them while giving you peace of mind.
If you’re still not convinced that you should divide your properties and assets why you’re still alive, here are three more reasons you should do it.
Dividing Your Assets Ensures You Give It to Those Who Deserve It
If you don’t choose who can receive parts of your assets or property when you die, you nor your family members won’t have any right to control what happens to everything you’ve worked so hard for. The court will be left to decide who can get your properties or assets, which is a process that can take several years, get extremely expensive, and ugly fast. After all, the judge and his jury won’t know which one deserves the free cash flow.
Dividing your valuables among family members early on while you’re still alive allows you to give it to those who deserve it.
Splitting Your Assets Save Your Loved Ones From Tax Burdens
Dividing your properties and assets early on can protect your family from the massive tax burdens that the Internal Revenue Service (IRS) forces on beneficiaries. If you don’t split your assets early, your loved ones may owe the IRS a lot of taxes when you pass on. It’s best to hire a lawyer to help you create a thoroughly written estate plan to transfer assets to your heir with the smallest possible tax burden, allowing them to enjoy your legacy.
It Saves Your Family
When someone in the family dies, many family members argue between who gets what and how much, which usually escalates fast and leaves most families strained. These familial arguments and squabbling usually gets ugly and leaves most families in court, with your loved ones pitting against each other.
Deciding who gets what early on while you’re still alive and well let you choose who will get to control your assets, properties, and finances when you pass on or become mentally incapacitated. Besides saving your family, splitting assets and properties gives you the peace of mind that everything you’ve worked so hard for gets handled the way you intended them to be.
Additionally, it’s wise if you let your attorney make individualized plans to arrange what exactly your loved ones can get or not get, giving you more to those who deserve it.
Estate planning isn’t limited to the wealthy, and it can help you sustain your surviving family members when you die, even if you don’t have a mansion, massive IRA, or valuable pieces to pass on to them. Additionally, it saves your loved ones from facing costly tax burdens, allowing you to ensure everyone’s safety and comfort even after you pass on.