Estate planning is not exclusively for the rich. Without a plan, settling your affairs could have a long-lasting and negative impact on your loved ones. You may not have an expensive home or many assets, but it is still necessary to do some basic estate planning. It might not be for you, but here are four reasons why you should consider estate planning. 

Keep Out of the Courts

     At one point, estate planning was reserved for more wealthy families but this has changed over the decades.  You don’t have to be rich to be in the stock market or own multiple pieces of real estate to benefit from estate planning.   If you don’t leave a plan behind, then you don’t get to choose who will inherit your estate.  One of the main components of estate planning is designating beneficiaries for your assets. Without an estate plan, the probate courts will decide who gets your assets. This process can take years and rack up tens of thousands of costs quickly. The courts don’t know which child will be the most responsible with the cash and in Arkansas a surviving spouse would only receive about 1/3 of your assets.

Estate Planning Protects Young Children 

     Estate planning also protects your children’s futures. If you were to die young, you can appoint a guardian for your children. This prevents the courts from picking a guardian you would not want. 

Estate Plans Protect Against Unfair Taxes

     Protecting your loved ones is the purpose of estate planning. This gives protection from the IRS. The right estate plan will allow you to transfer assets with the smallest tax burden possible. Even just a small amount of estate planning can significantly reduce the tax rates you might otherwise have to payout.  

Estate Planning Eliminates Family Feuds

      When someone with money dies, sometimes a war between family members begins. One sibling may think they deserve more than another or should be in charge of the finances regardless of their reckless spending. This can often lead to lengthy court proceedings. Stopping fighting before the start only adds to the reasons why one should consider estate planning.

     This will go a long way in helping your family out. It can also be used to choose how to divide the money up. Some children can get a lump sum, while others are given money in payments. You can choose to divide your estate equally or to give different members a different-sized portion.

     Please make sure to consult an elder law attorney to figure out your best plan of action. This can save you and your loved ones a lot of time and money. That is why it is important to do this early so there will be a much smoother transition of assets after death. This can greatly help with court battles, tax burdens, long-term care costs, and more.