Although planning for one's death is generally not an appealing activity for individuals in Texas and other states, creating an estate plan is essential for protecting one's assets in the event of one's death. Unfortunately, sometimes people do not create estate plans, or even if they do engage in estate planning, they make some costly mistakes. A couple of tips may help Texas residents with estate planning.
Posts tagged "estate planning"
Estate planning is often avoided simply because it is understandably not enjoyable to discuss the topic of death. However, not engaging in estate planning in Texas may mean one's assets will not be passed down to loved ones according to one's wishes. It may also mean one's kids will fight over the money left behind.
When a person spends several years of his or her life building a business in Texas, all of his or her hard work can end up falling apart if he or she dies prematurely and has failed to do engage in estate planning. If the business is worth a million dollars, for example, an estate or death tax can be slapped on the business, thus reducing the company's worth by half. Then, ex-spouses, family members and co-owners may fight to get a piece of the business, essentially causing the business to go to zero equity. Estate planning may help to prevent this from happening.
Estate planning is not usually high up on anyone's "to-do" list. After all, Texans naturally prefer to live in the moment and enjoy life rather than talk about death and illness. Nevertheless, estate planning is essential for making sure that one's wishes are met in the event of an unexpected incapacitation or death.
Estate planning basics have not changed in recent times. However, three major elements of estate planning that have emerged in recent years in Texas and other states are making the process a growing necessity. These elements -- aging parents, digital assets and pets -- can be addressed in a last will and testament or in a revocable trust.
Many single people in Texas may feel as though they do not need estate plans since they do not have families of their own. However, estate planning is essential for both married and single individuals. In fact, it is almost even more important for single people than for those who are married.
Predicting the future is impossible, and life has the potential to change instantly. This is why it is critical for people in Texas to be prepared by engaging in estate planning. Estate planning allows people to plan for their deaths as well as for incapacity, ensuring that people are in place to manage their assets, pay their bills and make medical decisions for them if they are unconscious at a hospital. Other life events can spark an interest in creating or updating an estate plan as well.
Creating and reviewing an estate plan is often viewed as grim work. After all, people in Texas would likely prefer to do other things than contemplate exactly what will happen when they die. However, engaging in estate planning is important for ensuring that one's wishes will be carried out after death.
Thinking and talking about death is understandably difficult for many people in Texas, which is why estate planning is often not on people's lists of priorities. However, it is essential that individuals, especially farmers and other small business owners, think about the future of their businesses and livelihoods for their survivors. A few tips may help people engage in effective estate planning.
Research shows that 40 percent of people in the Baby Boomer generation have not yet created wills. When considering all of the Americans who are older than 34, this figure jumps to a whopping 71 percent. A lot of people blame a lack of incentive or even procrastination for this; unfortunately, failure to engage in estate planning in Texas may end up seriously costing one's surviving family members.