No one enjoys thinking about their own mortality—which is probably one reason why many people don’t have an estate plan in place. Although thinking about your death may not be pleasant, it is absolutely necessary if you want to protect your family and your assets.

An estate plan ensures that your property will go to the loved ones of your choice. It will also help your family to save a great deal on taxes, court costs and attorney fees. Without an estate plan, your family and loved ones will be burdened with complex financial matters after you die.

What’s in a plan?

At the very least, an estate plan should include a durable power of attorney and a will. A durable power of attorney ensures that your property is properly managed if you are alive but cannot manage your own assets due to illness or injury. A will ensures that your property is appropriately distributed and managed after your death.

Ten good reasons for an estate plan

You may assume that you’re too young or that you don’t own enough assets to need an estate plan. The fact is that everyone should have an estate plan.

Still not convinced? Here are just a few important reasons for an estate plan:

1. Protect minor children: If you have minor children, who will raise them if you die? If you don’t have an estate plan, a court will decide. With an estate plan, you can decide who will gain custody of your children.

2. Distribute your assets to your liking: If you die and have no will, your assets will be distributed according to your state’s laws. The state will decide which family members receive your assets. With an estate plan, you get to decide which family members, loved ones or charities receive your assets, when they will receive those assets and how those assets should be used. For example, you can specify that your son receives some or all of your assets if and when he graduates from college.

3. Safeguard your special needs child: If your child has special needs and receives Medicaid or SSI benefits, they could be disqualified from these programs if you die without an estate plan. However, with an estate plan, you can set up a Supplemental Needs Trust that ensures your child will continue to receive government benefits. He or she can then use the trust assets to pay for non-covered expenses.

4. Choose a power of attorney: If you are alive but become incapacitated, who will manage your affairs? With an estate plan, you can choose the most reliable person to manage your assets through a power of attorney.

5. Ensure all of your children are covered: If you have been married more than once and have children from each marriage, an estate plan can ensure that all of your children get the assets they deserve. Without an estate plan, your assets will likely only go to your current spouse and the children from that marriage.

6. Offer your family financial security: An estate plan that includes life insurance can ensure that your surviving family will not struggle financially if you die.

7. Keep it in the family: With an estate plan, you can make certain that your assets remain in the family. However, without an estate plan, your assets could slip out of your family’s hands. For example, if your daughter receives your assets and then passes away, your assets may end up going to her spouse instead of your grandchildren or another family member.

8. Avoid probate: If you don’t have an estate plan, your estate may be subject to probate, which often means your family will face many delays and excess fees. An estate plan helps your family to avoid probate court.

9. Shelter your business: If you own a business, an estate plan allows you to choose the best person to take over when you die. If you don’t have an estate plan, your family or partners could lose control of the business altogether.

10. Choose retirement account beneficiaries: If you own an IRA or other retirement account and die, your heirs could face some lofty tax consequences without an estate plan. Plus, the beneficiary you named on a retirement account years ago may not be the best beneficiary now. If you have an estate plan, you can name the proper beneficiary to your IRA and avoid many tax penalties on the retirement account.

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