{"id":287028,"date":"2016-04-04T10:45:46","date_gmt":"2016-04-04T15:45:46","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/estate\/planning-an-estate\/non-tax-reasons-for-having-an-estate-plan.html"},"modified":"2025-09-04T12:00:00","modified_gmt":"2025-09-04T17:00:00","slug":"non-tax-reasons-for-having-an-estate-plan","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/estate\/planning-an-estate\/non-tax-reasons-for-having-an-estate-plan.html","title":{"rendered":"Non-Tax Reasons for Having an Estate Plan"},"content":{"rendered":"\n
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Non-Tax Reasons for Having an Estate Plan<\/h1>\n\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Estate planning is more than reducing your taxes. The advantages of an estate plan are having control over asset distribution, avoiding family conflicts, protecting your family, and limiting time in probate court.Estate planning is more than reducing your taxes. The advantages of an estate plan is having control over asset distribution, avoiding family conflicts, protecting your family, and limiting time in probate court.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Estate planning is essential to provide peace of mind. It is a powerful tool to accomplish your goals and help protect your assets for family members and your legacy. Whether you have tens of millions to protect or\u00a0a more modest estate, estate planning is critical.<\/p>\n

Without an estate plan, specifically a will, the laws in your state will determine what happens to your possessions, and the courts will decide who gets custody of your children.<\/p>\n

Under current federal tax law, a person may pass everything they own to a surviving spouse without paying any federal estate tax or federal gift tax. In addition, a person may pass up to a\u00a0certain amount\u00a0<\/a>($12.92 million for singles and $25.84 million for married couples in 2023) to anyone other than their surviving spouse without paying federal transfer taxes. The taxable estate must not exceed the limit for the tax exemption. Otherwise, the IRS will impose a transfer tax and require a tax return for the tax liability.<\/p>\n

Individuals whose estates fall below the federal exemption threshold may think they don’t need an estate plan because they won’t have federal tax liability. However, there are numerous non-tax reasons for having an estate plan.<\/p>\n

Control Distributions of Your Assets<\/h2>\n

Estate planning lets you control the distribution of your assets after death. It ensures your wishes are fulfilled.<\/a>\u00a0You can use a plan to create family harmony, not conflict. Without an estate plan, no matter what your net worth is, your probate estate will be distributed according to your\u00a0state’s intestacy laws<\/a>.<\/p>\n

Estate planning also helps your loved ones deal with your estate with minimal conflict. A well-crafted estate plan can help prevent family disputes. You can control the distribution of your assets when you create an effective strategy.<\/p>\n

Maintain Privacy With Your Financial Affairs<\/h2>\n

Estate planning can help you keep your affairs private and out of the public eye. If you engage in estate planning, you can employ strategies to transfer assets without going to probate court. When you open a matter, the probate process is a matter of public record.<\/p>\n

For example, when you transfer assets through most\u00a0types of trusts<\/a>, you can maintain privacy. With a trust, the matter is private. This is the case whether you transfer assets to an irrevocable trust, a revocable living trust, or a special needs trust. The same is true for beneficiary designations.<\/p>\n

For some assets, you can name beneficiaries other than the estate for property, such as:<\/p>\n