The Importance of Estate Planning
The Importance of Estate Planning
Most people are accustomed to and know the importance of planning for the proverbial future, but there are very few matters people want to avoid more than planning for a future that does not include themselves. Such is the quandary of estate planning. Despite how unnerving it may be, thoughtful estate planning is critical for most, and, quite frankly, should be a priority for everybody.
Consider the story of the late Chadwick Boseman. When the Black Panther star lost his battle with colon cancer in August, 2020, he died without a will. Boseman left behind an estate worth nearly $940,000, which did not include non-probate assets such as life insurance, 401k, or other retirement funds. This left Boseman’s widow with the burden of petitioning a probate court to be the administrator of his estate, and potentially devoid of many decision-making abilities. According to JDSUPRA.com, If Boseman had resided in New Jersey, for example, and died with no will, complicated laws would limit his widow’s entitlement and require her to share the estate with Boseman’s parents, as well as be subjected to a swath of legal fees. Unfortunately, Boseman’s story isn’t terribly unusual, but it is a high-profile cautionary tale.
We can learn from Boseman’s story, but many have learned from stories closer to home why estate planning is so critical. Of course, it is necessary to have a comprehensive understanding of estate planning, as it reaches far beyond the simplicity of a last will. Estate planning does encompass last wills, along with medical wishes, testamentary trusts, powers of attorney, and beneficiary designations. Preparing these documents and processes will undoubtedly bring assuredness and peace of mind to loved ones left to sort it out. All of this provides important legacy protection. If one accounts for these things prior to death, one maintains and then bequeaths a significant amount of control over all of the assets and decisions that are left behind.
According to Business Insider, there are many reasons estate planning is important, many practical benefits of completing it, and many pitfalls it helps avoid. There is no denying that estate planning will mitigate family conflict, save loved ones’ time and money, and safeguard posterity. It stands to reason that if people can ensure all of that before they go, they are much more likely to rest in peace.