Question

Why we need estate planning and what age we need to do it?

Answer 1

To protect our assets and loved ones when we are unable to do on our own, we need an effective estate planning. Without an estate planning our heir(s) will face many difficulties as Court will step in and you will have no control over it and it will become a long process. An estate plann let us to choose who will be our beneficiaries and attorney (s) when we are no longer capable.

Protection for beneficiaries - We get to choose who wil get what after we pass away or no longer capable.Like you wan to give somthing to your spouse and different assets to different childrens. If there is no estate planning then Court will decide it, but court doesn't know who have been responsible and who deserves what.

It saves taxes- Essential to estate planning is transferring assets to heirs with an eye toward creating the smallest possible tax burden for them. Even with just a little bit of estate planning, couples can reduce much or even all of their federal and state estate taxes and state inheritance taxes, which can get very pricey. There are also ways to reduce the income tax beneficiaries might have to pay.

Protection for young children - If we have any young children bellow than eighteen , estate plann lets us to choose who will be responsible and take care of them after the couple passes away.Simply, we can determine who will get their guardianship.

It also eliminates family fights.

what age we need to do estate planning?

Once we are above 18 we should start estate planning (and keep updating it in 30s 40s and so on as per our needs)  as our parents no longer have authority to make healthcare and financial decisions for us. In estate planning we can choose a power of attorney for healthcare and financial matters in case we are not able to take decisions for ourselves.

As we grow older we should keep updating it based on our needs and situations, like owning Some assets, getting married and having spouse, becoming a parent and owning some more assets like home and other propertie and having some savings.