The real reason for estate planning is often overlooked by most people and attorneys.
Planning is more than a stack of documents. The documents are the implementation of a plan, not why you create a plan in the first place.
If you do a search on the internet for “reasons to estate plan” you’ll end up with a list something like this:
- Avoid Probate
- Save Time
- Save Money
- Avoid Hassles
- Reduce Taxes
But, are those the real reasons for an estate plan? The reasons for estate planning go deeper than just avoiding probate.
It’s true that estate planning can save money. So what? Money helps by giving your family more financial freedom. Your family will have more to go around. A little money can mean the difference between their financial independence or financial doom. More money often leads to more stability.
Planning saves time. So what? Saving time means your family can spend time taking care of what’s important, family, not doing paperwork and going to court. Your family will often get what is coming to them faster with a plan than without. This timing can make a huge difference in their lives.
Planning stops fights. Fewer fights lead to better family harmony. I know I don’t like to see my children fighting. I imagine you are a parent who wants family harmony.
Planning leads to a feeling of peace of mind. Most people that plan with me say that it is a relief to have their plan done. This is a good reason to plan, but I don’t think we’ve gotten to the real reason for planning yet.
If you keep peeling away at the layers, you arrive at the heart of the matter.
The real reason for estate planning is that you care about your family. You want to take care of them the best you can. You want to know that you’ve done everything you can to protect you, your family, and your money. You do that by planning for active management of your hard earned money during your lifetime and the easy transition to your family. You do this because you care.