The Novel Coronavirus, also known as COVID-19, has paralyzed the nation. For example, stores are closing, movie theaters have gone dark and restaurants are boarded up for the foreseeable future. Also, with a mortality rate of over three percent, immunocompromised and aging citizens are the most at risk. Thus, during this Coronavirus outbreak, it is important to consider your future and the future of your loved ones. One of the best ways you can do this is to create an estate plan. An estate plan can give you the peace of mind to know that your loved ones and estate are protected. Here are the top three reasons you should create an estate plan during the Coronavirus outbreak.
Reason One: Avoiding Probate
Drafting an estate plan may help your loved ones avoid or at least minimize probate. When you die without placing everything into a trust, your assets and estate will enter probate. Although in Colorado this is neither a long nor a particularly difficult court process; however, it does have its costs. Without a will the law determines how to divide your estate. With an estate plan, you can decide now how to divide up your estate. This can reduce long courtroom battles and family strife. Additionally, it can give your beneficiaries access to your assets at a faster pace. This may come in handy due to the current state of the global economy.
Reason Two: Reducing Estate and Income Taxes
Another reason to draft an estate plan during the Novel Coronavirus outbreak for large estates is to reduce the amount of taxes on your estate. Even the most basic planning can help you reduce or eliminate estate taxes altogether. For example, setting up AB Trusts or ABC Trusts as part of the estate plan is one option that may help reduce estate taxes. Doing so could be useful to your beneficiaries as we enter this difficult economic period. A properly drafted estate plan can reduce income taxes incurred by your beneficiaries.
Reason Three: Protecting Your Beneficiaries
Of course, one of the main reasons to draft an estate plan is to protect minor beneficiaries. For example, minor beneficiaries need a guardian or conservator. With an estate plan, you can choose who you believe is best to be a legal guardian to or conservator of the assets of your children. This prevents costly custody battles after your death. You can also create trusts to help beneficiaries manage their money and inheritance. Since the Novel Coronavirus has a higher death rate among the older population, it is best to act cautiously and make contingency plans for your children or grandchildren.
Contact Our Denver Estate Planning Lawyers
The Coronavirus outbreak has the entire country on hold. During this scary time, it is important to protect yourself and your loved ones. This means drafting an estate plan that safeguards your assets and your beneficiaries from the lengthy probate process. Without it, family members are often left trying to make difficult decisions in their grief. If you need assistance creating an estate plan, the Denver estate planning lawyers at Wiegand Attorneys & Counselors, LLC can help. Call us today at (303) 625-6280 or fill out our confidential contact form for more information. We realize that this is a frightening time for everyone. Let us give you some peace of mind during these dark times.