Estate planning is what some may consider a necessary evil. It can be very uncomfortable to think, much less discuss, how you would like to distribute your assets after your death. When you take into account the heaviest decisions, such as who assumes the guardianship of any minor or who takes care of your business, you should not be surprised that many people delay or neglect estate planning altogether. In addition to general discomfort, many give up succession planning because they simply do not understand its importance.
What is estate planning?
Estate planning is the process of preparing the way you want your assets to be distributed upon your death or disability, and the documentation of your wishes regarding medical care at the end of your life. It is a fairly common misunderstanding that estate planning is reserved for the rich. In fact, all those who own property, have money in a bank account or own personal items have an inheritance and must plan their orderly distribution. In addition to determining who receives what from your inheritance, a wealth plan may also contain crucial components that could prevent your loved ones from having to make complex decisions for you.
Why is it important to plan heritage?
Estate planning has many benefits, regardless of the size of the estate or personal circumstances. Almost everyone can benefit from having estate planning documents that respond to their personal needs, including the following:
- Legal power
- Advanced Medical Directive
Having your documents prepared by a lawyer with experience in estate planning in Vancouver will greatly reduce the chances that your estate is subject to the process of legalization of will, which can be emotionally and financially exhausting.
Business succession planning
Not only is comprehensive estate planning important for families, but it is also vital that Maryland business owners have a strategy. When establishing your business succession strategy, here are some points to consider:
- Identifying your team of lead advisors
- Determine if family members want and are qualified to run the business
- Identify key employees to help run the business
- Determine a schedule of when and how the company will transition to its successor
- Incorporation of your personal wealth plan
Many business owners do not establish a succession plan in advance. An unforeseen illness or the death of an owner can lead a company to an irrecoverable and downward fall. A solid succession plan can detail what to do in case of death or premature disability of the owner.