You need an estate plan because if you don’t outline your wishes in advance, the Florida probate court system will make all the decisions regarding your family’s future and your assets. This default process is known as intestate succession and isn’t what you really want, knowing it can be potentially devastating to your loved ones. Working with a qualified estate planning attorney ensures your intentions are carried out and that your family is provided for after your death.
Top 5 Reasons You Need an Estate Plan in Florida
There are important considerations at every stage of life, but certain milestones require more detailed planning for future security. Getting married, maybe starting a family, advancing in your career, buying a home or a vacation home, retiring, inheriting wealth, entering a care facility—all these and many more require thoughtful decisions. When you create an estate plan, it’s an assurance that your family and everything you’ve worked for is protected. Here are some of the top reasons why.
1. Ensure Asset Distribution
This is an essential component of estate planning. Failing to plan for the distribution of assets after your death can result in unintended consequences, such as a lengthy, costly, and public probate process, lack of equal asset allotment, and potential disputes among family members. Documents your attorney may recommend may include a will and a type of trust, such as revocable or irrevocable.
2. Protect Assets From Third Parties
Different types of trusts also protect assets from creditors, lawsuits, and divorce settlements. Assets secured within a trust are legally separate from your personal assets. Additionally, a trust may provide flexibility in how and when assets are distributed to your beneficiaries.
3. Minimize Tax Burdens
Another reason you need an estate plan is so an experienced attorney can find solutions for allowing beneficiaries to receive assets without going through the probate process. They might recommend trusts that provide tax benefits, or gifting heirs assets in advance, which reduces the size of your estate upon your death and lower subsequent taxes.
4. Guardianship for Dependent Care
Preparing for the future of minor children or loved ones with special needs is a critical aspect of estate planning, and one you want to be legally secured if something ever happens to you. Parents of underage children should consider naming a guardian in their will to ensure they’re cared for in the event of their untimely passing. Additionally, a guardianship plan provides ongoing attention and expenses for aging parents or other loved ones with special needs.
5. Guardianship for You
Your estate plan should also include a trusted person to manage your affairs in case of incapacitation. This person, also known as a power of attorney or agent, is responsible for making financial and legal decisions on your behalf if you’re unable to do so. It’s crucial to choose a trustworthy, reliable individual who can handle the role's responsibilities. A power of attorney can have broad or limited powers, depending on your preferences, and be revoked or changed at any time as long as you’re mentally competent.
Another important point: you need an estate plan that changes along with the continued evolution of your financial and personal circumstances. Choosing a skilled estate planning attorney who knows the importance of regular reviews and updates ensures your wishes will always be honored.