If your family owns any assets whatsoever, estate planning is absolutely critical. It’s an often-neglected part of financial planning and wealth management, but it’s also one of the most important. Contrary to popular belief, estate planning is not just something that wealthy people or people who have large families do. It’s for everyone, and here are four important reasons why. 

It Puts You in Control of Your Wealth 

When something happens to the breadwinner(s) in a family, it can put the rest of the family in a precarious situation. Most of estate planning involves determining who will get your assets when you die, and those assets can include everything from your life insurance policy to your summer home in New England to a stock portfolio worth millions of dollars. If you don’t put a very clear estate plan in place, the court will ultimately determine who gets what. If you want to have the final say, contact a professional about creating an estate plan today. 

It Ensures Your Young Children are Supported

It’s hard to think about the possibility of leaving your small children behind if something should happen to you, but it’s a very real possibility that everyone needs to consider. If you don’t have a contingency plan in place, your children’s financial future may not be as bright as you’d like. Your estate plan allows you to determine who will take custody of your children in the event of your untimely death, and it will also allow you to allocate funds to those guardians for the specific purpose of raising them. 

It Drastically Reduces Tax Obligations

When there’s any kind of transfer of wealth, the IRS wants in on it - and they tend to take a big bite, too. One of the most important reasons to sit down and make an estate plan is to help your heirs avoid that huge tax burden that often comes from accepting an inheritance. If you’re worried about taxes, talk to a trusted financial advisory firm about your options. You might be able to drastically reduce (or even completely eliminate) your heirs’ tax burdens with some basic estate planning. 

It Keeps Families Happy

Finally, and perhaps most importantly, having a solid estate plan in place can prevent war from breaking out among family members after your passing. Even when families are close-knit, arguments over your estate can quickly become heated and lead to major disagreements. When you put an estate plan in place, you get the final say. If you die or become incapacitated for any reason, the instructions in your estate plan are legally binding and must be followed. This can prevent a great deal of family strife, especially in a time when families should lean on one another. 

There will inevitably come a time when you will no longer be able to manage your assets, and an estate plan allows you to determine how things will be carried out when that time comes. From reducing your heirs’ tax obligations to supporting your young children, an estate plan is an absolute must for anyone who owns assets - not just those who are rich or those who have large families.