Estate planning is a necessary and important step for anyone with real estate in Wisconsin. The process ensures that your assets get distributed according to your wishes in the event of your death or disability. If you’ve not started estate planning, here’s what you need to know about it.
What is estate planning?
Estate planning is the process of designing a plan to distribute your assets after you become incapacitated or die. This includes real estate as well as other possessions and investments. The goal is to make sure that your loved ones get what you want them to have in a way that’s easy for them to follow.
What does estate planning involve?
There are a few key elements to estate planning. The first is the will, which sets out your wishes for how your assets should get distributed after you die. You’ll also need to create a power of attorney, which appoints someone to make decisions on your behalf if you’re unable to do so yourself. Finally, you’ll need to name an executor, who will be responsible for carrying out your wishes.
How can estate planning protect your real estate and heirs?
One of the key benefits of estate planning is that it can help to protect your assets, including your real estate. If something happens to you and you don’t have a valid will in place, the state may decide how to distribute your assets. Thus, your property may get distributed in a way that you wouldn’t have wanted, and it could cause conflicts between family members or other beneficiaries.
Additionally, when it comes to taxes, estate planning can help to reduce the amount that you owe. This is because you can take advantage of deductions and exemptions that aren’t available to those who don’t have a valid will.
Lastly, estate planning can protect family wealth. Without a valid will, the process of passing assets down from generation to generation can get complicated. It can also create conflicts between family members, which may result in the loss of your real estate.
Today, many Americans don’t have a will or living trust. This means that there’s no guarantee as to how their assets will get distributed after they die. You can avoid being part of this statistic by starting your estate planning process.