Many people think they don't need an estate plan. They relate the term to tax planning and feel that their estate is not big enough to bother. They therefore think estate planning has nothing to do with them.
But estate planning is more than a method to avoid or reduce estate taxes. Many young families might be surprised to learn they should think about estate planning now. Right now there is an effort to abolish or confine estate taxes to only the very wealthy. You can also choose the right estate planning lawyer in Maryland to get the best solutions.
Image Source: Google
Estate planning can be used to distribute your taxable estate in such a way that taxes are minimized. There are all sorts of ways to do this and, if you are wealthy enough, your financial planners and attorneys should be working together to do this for you.
For the rest of us, estate planning is less involved with taxes and more with who inherits your estate; who cares for your minor children; how you feel about life support measures; or who will control your affairs if you are unable to.
Your estate is all you possessions – savings, home, car, investments etc. If you have a will, your estate will be distributed according to your wishes. If you don't, they will be distributed under state intestate laws.
You would have to check the laws in your state, but there could be cases that if you die without a will, your parents would inherit your property, not your wife or your money could go to distant cousins and not to your lifelong companion.
So the main reason for a will is to have your property distributed according to your wishes. If you want to leave your money to the Salvation Army and not your son, this is the way to do it.