Is the Cost of Estate Planning Worth It?

In my experience, many people are generally familiar with the term “estate planning,” but most people do not seem to know the far-reaching benefits of implementing a comprehensive, personal estate plan. Having an estate plan is a valuable tool that protects you and your loved ones—in life and in death. Among other things, it is a way to save taxes, provide security, and dictate your wishes with respect to your property when you pass on. Below are four (4) benefits of why the cost of estate planning is worth it.

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1.        Saving Money and Taxes

One of the major benefits of estate planning is that it saves you money in the long run. By having the right estate plan in place, you can potentially avoid the probate process, which can be a time-consuming and expensive process. Probate is the legal process that oversees the validation of a person’s will and the distribution of his or her estate after he or she dies.[1] Having an estate plan that includes items like a living trust can help you avoid the costly probate process.[2] Estate planning also involves tax planning to help reduce any estate taxes that may be due at the time of death.

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2.        Providing Peace of Mind

Estate planning provides reassurance that your loved ones will be taken care of after your death. One of the primary components of estate planning is designating the heirs of your assets. Without an estate plan, the courts (or default rules) decide who gets your assets.[3] Additionally, your estate plan may incorporate the appointment of a guardian for yourself and/or your minor children.[4] Having these measures in place can provide security in knowing what happens after you pass on.

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3.        Securing Assets

Estate planning also provides security over your assets. As mentioned above, putting assets in a trust and having a will are two planning mechanisms by which you can direct your assets when you die. No matter how many (or how few) assets you may have, estate planning is important in addressing the totality of your estate.

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4.        Planning for Incapacity

Estate planning can also prepare you for possible incapacity (assisting with financial affairs and providing for food, clothing, and shelter if you become unable to do so for yourself).[5] Besides creating a will and trust, estate planning also involves creating a financial power of attorney and medical power of attorney to make decisions for you if you become incapacitated.

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Conclusion

Although there are costs associated with estate planning, the legal costs far outweigh the potential expenses of not having an estate plan. Estate planning saves money, provides peace of mind, and lets you have control over your assets and how they are distributed. It is better to implement an estate plan now than to roll the dice without one, forcing your family to pick up the pieces and deal with the consequences. For help with estate planning, contact Montgomery Legal today. Schedule a Consultation or call (214) 432-6100.

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[1] Probate Law, available at https://guides.sll.texas.gov/probate.

[2] Michelle Kaminsky, 5 Ways To Avoid Probate, LegalZoom (November 2022), available at https://www.legalzoom.com/articles/5-ways-to-avoid-probate.

[3] Donna Fuscaldo, 4 Reasons Estate Planning Is So Important, Investopedia (December 2023), available at https://www.investopedia.com/articles/wealth-management/122915/4-reasons-estate-planning-so-important.asp.

[4] Id.

[5] Planning For Incapacity, available at https://corporate.findlaw.com/law-library/planning-for-incapacity.html.

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