Estate Planning and Your Finances

In the minds of many people, estate planning is a morbid task associated with old people and stuffy lawyers – something concerned with and best left to the distant future. Nothing could be further from the truth. In fact, the process of estate planning is a key part of preparing yourself and your finances – not just for death, but for the rigors of life.

It is ironic that many of the same people who tend to avoid estate planning think very highly of the related topic of financial planning – that is, preparing and diversifying one’s cash reserves, investments, and assets in a way which ensures an adequate supply of money for both day-to-day living and future retirement.

The analogy is simple: if no intelligent person would leave financial planning for retirement until the last minute, why would that same person choose to leave estate planning until the last possible moment? In the same way that putting off financial planning results in cumulative consequences, putting off estate planning results in more complications down the road.

Yes, it is true that the final goal of estate planning is the efficient distribution of your assets after death; however, starting is the process early is key for several reasons:

• Estate planning takes time. The estate of the average person is now more diverse and complex than ever. This, combined with tangled family relationships, makes the process of estate planning extremely involved and time consuming.
• Starting early reduces conflicts later on. The longer that your heirs have to get used to the provisions set down in your will, the less likely that there will be serious conflicts in the future, when you are unable to help resolve them. Though the provisions of your will may change, laying the foundations early is very important.
• Estate planning influences financial planning. The way you plan to distribute your assets heavily influences the way in which you diversify and protect them. Having your plan laid out early on will save you countless headaches in the future.

Need help planning the future of your estate? Call Austin estate planning attorneys Slater, Kennon & Pugh LLP today at 512-338-1100.