Avoid Probate Fees
Probate is the legal process of distributing the assets of a deceased person. The fees associated with this can add up quickly if the proper documentation isn't in place.
Capital Gains/Income Taxes
By understanding how your financial assets will pass to your heirs, you can strategically position your accounts to pass in the most tax-advantageous way.
Estate tax
If your estate exceeds the pre-determined exemption by the IRS, it may be subject to estate tax prior to passing to your heirs.