Estate planning allows you to name the guardian of your children in case of premature death. Reducing taxes on what you leave behind is a common goal of estate planning. estate planning minimizes the chances of family conflicts and ugly legal battles. If you were to ask 10 different couples what their estate planning goals are, you'll probably get 10 different answers.
However, after a deeper survey, you'll find that most married couples share the same basic estate planning goals. Knowing these goals helps both the couple and their estate planner determine what might be the best way to structure their estate plan. Below are eight of the most common estate planning goals that influence a couple's estate plan. Another key goal of estate planning for married couples is to minimize taxes.
By minimizing the amount their assets are reduced to pay taxes, married couples, in turn, maximize the amount of assets that go to loved ones. This goal helps to achieve the primary goal of ensuring that your loved ones receive sustenance after the couple's death. Many couples prefer estate plans that maintain their privacy when given the option. However, this tends not to be a dominant problem with most couples.
However, recently there has been a significant increase in the number of seniors being targeted by fraudulent schemes and fraudulent limit requests. As a result, to the extent that an estate plan can protect the privacy of a married couple, especially as they age, this can help protect the surviving spouse from being targeted by such plans. At the very least, you should have your estate planner look at wealth and income taxes at both the state and federal levels. Going through the planning process allows you to choose a charitable cause that is important to you, select the assets you want to donate, and determine the best way to make your donation.
Although many couples, when they think of estate planning, think primarily of death, dealing with disability is also vitally important for virtually every married couple. Still, more than half of U.S. adults and 78% of millennials lack basic estate planning documents, such as a living will or trust, according to the American Association of Retirees (AARP). Of course, any good estate plan will require a financial investment, but that doesn't mean you can't be profitable at the same time.
Whether male or female, married, widowed, divorced or single, middle-class or wealthy, young or old, every individual and family benefits from the estate planning process. Most estate planning documents are dedicated to what happens after you die, but there are also several elements to consider in case of disability. As a result, when planning wealth for such individuals, they will want to put in place systems to try to replace their administration when they are no longer able to manage the family's assets. The most important estate planning goal for most married couples is to ensure that their loved ones are protected if one or both spouses become incapacitated or die.
As such, a common goal of estate planning is to minimize the amount of your assets that go to taxes. However, while most people have their own unique goals that they seek to meet, there are some goals that are common to most estate plans. And in the long run, all your goals are more likely to be achieved and your wishes will be fulfilled. You should always have a plan to know who is taking over your business when you leave, otherwise you could jeopardize the entire business.