Why simple may be better for estate planning

Why simple may be better for estate planning

| Dec 1, 2016 | Estate Planning |

Ohio residents may be aware that they need an estate plan. However, there may be many reasons why individuals don’t get around to actually making one. Common reasons include not having time to create the plan or letting the emotional side of estate planning stop them from actually thinking about their future. If an individual dies without some sort of plan, it could create financial issues for the decedent’s family.

Ideally, an individual will start thinking about an estate plan when there is less pressure to do so. It may stop that person from over-thinking and creating a plan that costs more than it needs to without necessarily meeting his or her needs. Those who don’t know what they want or need may want to consult with a financial adviser or an attorney who may be able to offer relevant insight.

Good planning is generally enough to minimize estate taxes that the government may collect. Therefore, there may be no need to have a complicated trust or other costly tools to be prepared for what happens after an individual passes on. Taking some time to plan right now allows individuals to think about their top priorities and what type of estate planning tools will actually help meet those priorities.

While the use of a trust may help to avoid having to go through the probate process, it may not be necessary or effective for all estates. Assets such as life insurance policies or real estate may skip probate if the owner makes a beneficiary designation or properly titles the home or other real property. An individual may wish to talk with an attorney to learn more about these types of matters.