Most people devote more time to planning a restaurant to eat out at or a vacation instead of real estate planning; it’s essential to determine who will inherit assets after someone passes away. Although estate planning isn’t as exciting as planning a vacation or reviewing restaurants, you can’t specify who gets your hard-earned money if you don’t plan.
Real estate planning is not only for the very old. No matter the age, everyone can benefit from advanced real estate planning. If you are wondering how to talk to your parents about estate planning, you will find some tips later in this article, along with the importance of real estate planning.
Protects your children
Nobody thinks of dying, but for the sake of your children living a comfortable and tension-free life, you must prepare for everything. Real estate planning is one of the most important things in this criteria.
If your children are below 18, and both parents die without a will, the court will decide who will raise them. With the right real estate plan in place, you can ensure that your children are properly cared for according to your approved manner.
Your estate will not go to unwanted inheritors
If you don’t have a will, the state will write it for you after your death, and you will have no hand in deciding who will be your beneficiaries. When your children are under 18, if you and your partner both die, your estate will be given to any other guardian according to the state’s laws. Planning real estate matters ahead of time is essential to avoid such situations.
If you have old parents and are wondering how to talk to your parents about estate planning, then you will get several opportunities to ask them about it. When someone passes away in your distant family or your parent’s retirement, you can highlight this matter and know what they have planned.
Protects heirs from hefty taxes
The purpose of real estate planning is to protect your loved ones, including protecting them from taxes. If your children or any other beneficiary inherits or estate without planning, they will be subjected to a massive amount of federal and state estate and inheritance taxes. There are different ways to reduce or eliminate these taxes, and hiring a lawyer can help you know about them in detail.
Eliminates family quarrels
People taking their family’s real estate matters to the courts are more common than you can imagine. In 2019, there were 286,289 civil cases in the United States alone.
You might have also seen family quarrels as soon as the parents or someone with money dies. Every child thinks he deserves more than the other one, which leads to ugly fights and ending up in court.
Real estate planning eliminates such situations, and you can decide which inheritor gets which part of your property. You can give control of your finances to someone who will manage it properly and other things to another ward.
You should spend a lot of time in real estate planning regardless of your age, financial situation, or the age of your children or spouse. Hopefully, all the points mentioned above have helped you understand why planning your real estate ahead of time is so important and how it will benefit you and your family in the future.