Reasons Why Planning for Your Death is So Important
May 23, 2012 By John Rogers Burk, A Law Corporation
None of us really like the idea of sitting down and planning for our death, yet as the old saying goes “the only things that are certain in life are death and taxes. Interestingly, the two go hand in hand in many cases. If you do not plan for your death, your estate will likely owe more taxes than had you taken the time to plan ahead.
Despite all the warnings and advice about the importance of planning for our death, the majority of Americans still fail to do so. So why is it so important to plan for our own death?
Let’s start at the beginning. Assuming that you die unexpectedly, at a reasonably young age, you will likely leave behind a spouse or partner as well as children. If you never took the time to create a funeral plan, or explain in detail what your wishes are with regard to your funeral and burial, then your spouse or partner is now saddled with making difficult decisions under a tremendous amount of stress and emotional turmoil. If you failed to pre-pay for the service, your loved ones are also faced with figuring out how to pay for the service. Remember, many of your assets will be temporarily inaccessible until a probate court approves their release. By not planning for the funds to be available to pay for the service, your loved ones now have one more stressful thing to deal with in the middle of their grief.
From a financial aspect, failing to plan ahead and both leave your loved ones without financial support in the short run and cost them money in the long run. Because many of your assets will be tied up in probate, your family could be in serious financial trouble right after your death. By taking the time now to convert accounts to joint accounts, set up a trust or purchase a small life insurance policy, you can ensure that they are covered financially while you assets are held up in probate. If you have substantial estate assets, those assets could be subject to the often high rate of estate taxes. By creating an estate plan now, you could also use some of the many estate planning tools to prevent those assets from incurring unnecessary tax liabilities.
ABOUT THE AUTHOR: John Roger Burk
Experienced estate planning attorneys Roseville CA of the John Rogers Burk, A Law Corporation offers estate planning and business planning resources to residents of Roseville CA.
Copyright John Rogers Burk, A Law Corporation
More information about John Rogers Burk, A Law Corporation
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Let’s start at the beginning. Assuming that you die unexpectedly, at a reasonably young age, you will likely leave behind a spouse or partner as well as children. If you never took the time to create a funeral plan, or explain in detail what your wishes are with regard to your funeral and burial, then your spouse or partner is now saddled with making difficult decisions under a tremendous amount of stress and emotional turmoil. If you failed to pre-pay for the service, your loved ones are also faced with figuring out how to pay for the service. Remember, many of your assets will be temporarily inaccessible until a probate court approves their release. By not planning for the funds to be available to pay for the service, your loved ones now have one more stressful thing to deal with in the middle of their grief.
From a financial aspect, failing to plan ahead and both leave your loved ones without financial support in the short run and cost them money in the long run. Because many of your assets will be tied up in probate, your family could be in serious financial trouble right after your death. By taking the time now to convert accounts to joint accounts, set up a trust or purchase a small life insurance policy, you can ensure that they are covered financially while you assets are held up in probate. If you have substantial estate assets, those assets could be subject to the often high rate of estate taxes. By creating an estate plan now, you could also use some of the many estate planning tools to prevent those assets from incurring unnecessary tax liabilities.
ABOUT THE AUTHOR: John Roger Burk
Experienced estate planning attorneys Roseville CA of the John Rogers Burk, A Law Corporation offers estate planning and business planning resources to residents of Roseville CA.
Copyright John Rogers Burk, A Law Corporation
More information about John Rogers Burk, A Law Corporation
View all articles published by John Rogers Burk, A Law Corporation
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
