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Why Estate Planning is Important?

Estate planning is an important part of being financially stable for the long term. When you prepare an Estate Plan, you are making sure that the people and things you care about deeply are taken care of.

What is an Estate Plan?

An Estate Plan serves to manage your asset base in case you become incapacitated, or the worst occurs, and you pass away. It includes the bequest of assets to heirs and any taxes that need to be dealt with. 

An estate plan is not just for the super-wealthy. You should have an estate plan in place if you have any assets or valuables and you want to choose who will inherit them. 

Just over half (56 percent) of all adult Americans believe that estate planning is important. However, the amount of folks who have one in place is only 33 percent!  

There are 2 main reasons you should have an Estate Plan in place. 


Tax is a big issue when it comes to inheritance and if you don’t have a plan in place, the people you love the most could be hit harder than necessary by Uncle Sam. When you’re planning your estate, you’re protecting the ones you love the most which mean that you don’t want them to get hit with a big tax bill. Getting good advice from a professional will stand you in good stead when you’re planning your estate. Putting a plan in place could reduce most or possibly all the federal and state estate taxes as well as state inheritance taxes.

There may be ways to decrease the income tax that any or all of your beneficiaries may have to pay Uncle Sam Research by Senior Living says that American retirees will transfer more than $36 trillion to their beneficiaries over the next 30 years. With over 60 percent of those retirees not having an estate plan, there is a lot of money that could be wasted. Do your research and find out what the laws and rules are both federally and in the state that you live in.


If you don’t have an estate plan in place and you have young children that means that you haven’t named your preferred guardians of your children in case of the unthinkable. If you don’t have a will naming who will care for your children, the court will step in and decide for you. 

“Life insurance should also be a consideration and a policy in case you get ill and can’t work,” says Richard Eden, Senior Vice President of David Lerner Associates, “These are tough things to confront but if you don’t have your bases covered, you could find you and your family in a position that is less than comfortable. Be as prepared as possible.”

No matter how old you are, estate planning helps your family and loved ones get through what will be a difficult time while minimizing the risk of any squabbles. Make sure your estate plan covers you and your family as best you can so you all have peace of mind and can enjoy your lives together. 


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable— we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.

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