Estate planning is not just for the wealthy, and men and women of all income brackets can benefit from putting together comprehensive financial plans before their death. With that being said, Robert Winkler of the Winkler Law Offices, an estate planning attorney in San Leandro, California, explains that people in higher tax brackets do have a greater need for estate planning than those who have fewer assets to protect.
When executed properly, an estate plan should help reduce the tax liability put upon a person’s estate after his or her death. As Winkler explains, the wealthier a person is, the greater the need for a formal estate plan.
With the threat of high estate taxes in mind, it is important that any person in San Leandro who has substantial assets—either financial or physical—get in contact with an estate planning attorney. In just a few short meetings, an attorney can help guide a person through the maze of creating a will or living trust that will protect his or her family and beneficiaries.
Just because estate planning is more important for people with significant assets to protect should not lessen the importance of estate planning for those with less money in their bank accounts. Winkler says that married couples can get certain tax rewards for having estate plans in place. This is especially the case once children are in the picture, since someone will need to decide what will happen to the children and the financial assets the family owns if both parents were to pass away suddenly.
For single people, having a will or living trust in place can be very important as well. Winkler says that a single person who has an estate plan can avoid having to lose a very substantial portion of his estate to a probate attorney, which is what could happen if a person were to die without having a will or living trust in place. Having an estate plan also helps speed up the process of the distribution of assets, allowing beneficiaries and loved ones to get access to money that was left for them quickly.
On an emotional level, Winkler says that there is far greater unhappiness and unease in the lives of families whose loved ones failed to leave clear estate plans upon their death. When these things are spelled out, families are less likely to bicker and fight over who will get which assets in the distribution process. Winkler explains that he has seen families get torn apart while trying to determine who should receive what following a loved one’s passing, and the best way to avoid this is to have an estate plan put in place.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.