When people in Virginia think about planning for the future, their minds often go to saving up money or planning for retirement. However, creating wills and/or trusts is also an important part of financial planning. Here is a look at why creating an estate plan featuring a will or trust is so critical.
When individuals create wills or trusts, they save both money and stress for a couple of reasons. The first is that they can ensure that their assets are handled according to wishes following their deaths. Second, they can minimize their tax liability.
However, creating an estate plan is a multifaceted process that requires a great deal of preparation. For instance, before developing a plan, a person may want to collect information about himself or herself as well as his or her family members. Any financial data — such as data on assets or liabilities — can be placed on a balance sheet. Those interested in creating estate plans can also calculate their possible gift, income and estate tax liabilities. In addition, it may be helpful to figure out if enough liquid assets would be available to cover possible estate expenses.
Through well-thought-out estate planning, which includes setting up trusts or drafting wills, people can better meet their financial objectives. For instance, they can arrange for their family members’ financial needs to be met even after they pass away. In addition, those with young children can identify an individual to serve as the children’s guardian. For those with businesses, they can further dispose of their ventures using estate plans. An attorney in Virginia can guide asset owners through the process of creating the ideal estate plans based on their wishes and their loved ones’ needs.