7 Benefits of Estate Planning for Your Family

Estate planning is a crucial process that involves making arrangements for the management and distribution of your assets and affairs after your passing or in the event of incapacity. While it can be a sensitive topic to address, especially with family members, the benefits of estate planning far outweigh any discomfort. Here's why we recommend you begin an estate plan as your experienced estate planning lawyers in Murfreesboro, TN.

1. Asset Distribution According to Your Wishes

Without an estate plan, state laws (intestacy laws) will determine how your assets are distributed. This may not align with your wishes and could lead to disputes among family members. Estate planning allows you to specify exactly how you want your assets to be distributed among your beneficiaries. You can allocate specific gifts, provide for loved ones who have special needs, and make sure your favorite charities are included.

2. Minimizing Family Disputes

Estate planning documents like wills and trusts provide clear instructions on asset distribution. This is essential not only for the distribution of assets but also for minimizing family disputes that can arise after your death or during incapacity. Below are several ways estate planning can help reduce family conflicts.

Clear Instructions and Intentions

Estate planning involves creating legally binding documents like wills, trusts, and beneficiary designations. These documents clearly outline how you want your assets to be distributed among your beneficiaries. By specifying your intentions in writing, you reduce ambiguity and potential misunderstandings among family members regarding your wishes for asset distribution.

Designated Executors and Trustees

Estate planning allows you to appoint executors (for your will) and trustees (for your trusts). These individuals have fiduciary duties to manage your estate and trust assets according to your instructions. Choosing responsible and impartial people to serve in these roles can help prevent conflicts among family members who may have differing opinions on how assets should be managed or distributed.

Protection of Vulnerable Beneficiaries

For minor children, estate planning allows you to designate a guardian who will care for them if you pass away. This eliminates potential disputes among family members over who should assume this responsibility. If you have beneficiaries with special needs, estate planning can establish special needs trusts (SNTs) to provide for their care without jeopardizing their eligibility for government benefits. This can help to prevent family disputes over financial support and guardianship. If you need assistance determining the right course for setting up an SNT, don't hesitate to reach out to our estate planning lawyers at McCarter | East PLLC. We're here to help.

Avoiding Probate Disputes

Properly executed estate plans can minimize the need for probate or make the process smoother. Probate disputes often arise when there is ambiguity in the deceased's intentions or when family members contest the validity of the will. Assets held in trusts typically avoid probate, as they pass directly to beneficiaries according to the trust terms. This can significantly reduce the likelihood of disputes over the distribution of assets.

Equal Treatment of Heirs

Estate planning allows you to decide how your assets will be distributed among heirs. Even if you choose not to divide assets equally, providing clear reasons for your decisions can help mitigate potential disputes. Discussing your estate plan with family members during your lifetime can help manage expectations and address concerns, reducing the likelihood of disagreements after your passing.

Mediation and Conflict Resolution

Including provisions for mediation or alternative dispute resolution methods in your estate plan can provide a mechanism for resolving disagreements outside of court. This can be particularly helpful if conflicts arise among beneficiaries.

3. Protecting Minor Children

Estate planning plays a crucial role in protecting minor children by making sure of their financial security and well-being in the event of their parents' incapacity or death. Other ways that estate planning can help protect any minors in your life include:

Appointment of Guardianship

Perhaps the most critical aspect of estate planning for parents with minor children is the ability to designate a guardian. In your will, you can specify who you wish to assume guardianship of your children if both parents pass away or become incapacitated.

By clearly stating your preference for a guardian, you reduce the likelihood of family disputes over who should care for your children. Courts typically honor parental wishes unless there are compelling reasons not to appoint the designated guardian.

Financial Management

Estate planning allows you to establish trusts specifically for the benefit of your minor children. These trusts can be funded with assets such as life insurance proceeds, investments, or real estate. Trusts enable you to specify how and when assets should be distributed to your children as well. For example, funds can be distributed for education, healthcare, living expenses, and other needs as specified in the trust document.

You can appoint a trustee (who can be the same or different from the guardian) to manage and administer the trust assets on behalf of your minor children until they reach a specific age.

Protection of Inheritance

Without proper estate planning, minor children may inherit assets directly upon reaching the age of majority (typically 18 or 21, depending on state laws). In Tennessee, the age of majority for inheritance is 18. 

If you're concerned about your children mismanaging their inherited assets and would like to wait for them to inherit them when they're older, placing assets in a trust can help guarantee that a trustee manages and distributes the inheritance according to your instructions. This protects the assets from mismanagement or misuse by young beneficiaries.

Education and Future Needs

Trusts can be structured to provide for the educational needs of your children, including tuition, school supplies, extracurricular activities, and college expenses. Through proper estate planning, you can make sure that your children have financial resources available for their long-term well-being, including housing, healthcare, and other essential needs.

Special Needs Considerations

As previously mentioned, if you have a child with special needs, estate planning becomes even more critical. Special needs trusts (SNTs) can be established to provide supplemental support without jeopardizing eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). Estate planning allows you to provide detailed instructions to caregivers about your child's specific needs, medical history, routines, and preferences.

Our estate planning lawyers at the law offices of McCarter | East PLLC offer special needs planning as a part of our estate planning services. We can help you establish a first-party or third-party SNT depending on your circumstances, or we can help you set up an ABLE account.

Continuity of Parenting Values

Estate planning allows you to communicate your values, beliefs, and parenting philosophies to the designated guardians and trustees. This helps guarantee that your children are raised in an environment consistent with your wishes.

4. Providing for Incapacity

Estate planning not only plans for your passing but also your incapacity in the event of a health issue. It involves documents like a durable power of attorney for finances and a healthcare directive (or living will). These documents appoint someone to make financial and healthcare decisions on your behalf if necessary. Without these documents, your family may need to go to court to obtain authority to manage your affairs, which can be time-consuming and costly.

5. Tax Planning

Estate planning can help minimize estate taxes that may be owed upon your death, allowing more of your assets to pass to your beneficiaries. By utilizing trusts, gifting strategies, and other techniques, you can take advantage of tax-saving opportunities provided by the tax laws.

6. Business Succession Planning

If you own a family business, estate planning can guarantee a smooth transition of ownership and management to the next generation or designated successor. Planning ahead can prevent disruption to the business operations and protect its value for your family and employees. As some of the top estate planning lawyers in Murfreesboro, TN and the surrounding areas, our team at McCarter | East PLLC can assist you with your business succession planning, so you can feel confident knowing your business will stay protected and continue running.

7. Peace of Mind

Perhaps the most significant benefit of estate planning is the peace of mind it provides. Knowing that your affairs are in order and your loved ones are provided for according to your wishes can alleviate stress and uncertainty.

Estate planning also reduces the emotional burden on your family during a difficult time. Clear instructions and decisions made in advance can help them focus on grieving and supporting each other.

Our Estate Planning Lawyers Are Here for You

Estate planning is a proactive and responsible way to make sure that your wishes are carried out, your loved ones are provided for, and potential conflicts are minimized. By engaging in estate planning, you can protect your family's financial security, maintain harmony among beneficiaries, and leave a lasting legacy that reflects your values and priorities. Consulting with our estate planning lawyers can help you work through the challenges of estate law and tailor a plan that meets your unique needs and goals.

When you're ready to get started working with estate planning lawyers you can count on, look no further than our legal team at McCarter | East PLLC. We service both Murfreesboro and Berry Hill, and our Murfreesboro office is located just three blocks from the courthouse for your convenience. Contact us today to schedule a consultation.