While it’s not a pleasant thing to think of, we are all certainly going to die. Planning for your distribution of material assets after you are gone is a prudent thing to do. Estate planning isn’t just for the ultra-wealthy. If you have savings, own your own home or two, and if you have accumulated things of value, these are all considered part of your personal estate. You should outline your desire for whom they should be entrusted to when you pass away. Doing so can give you comfort that you are leaving your hard-earned possessions in the right hands.
Preparing your will can help ease any burdens on your family who will have to deal with the complex legal and financial issues related to your properties. There is no better time than the present to begin working with a trusted financial planner and formalising your wishes. Here are several more advantages to starting your estate planning today:
1. It removes the responsibility from your heirs
Your passing will no doubt be an emotional time for the people you leave behind. If you have several accounts, insurance policies, and properties, having to process documentation and discerning what to do or who can keep them can add to the stress and emotional turmoil for your loved ones. It can be incredibly complicated if you have family issues and strained relationships. You can make things easier by organising your wealth and empowering a third party to distribute the assets on your behalf.
2. It will help you minimize tax expenses
Aside from the assurance that your estate will be dealt with according to your will, planning can also help you avoid costly taxation. When a property transfers ownership, the government will charge you capital gains tax, whether you are alive or not. A financial planner can help you look for efficient ways to transfer your assets to your heirs through gift tax or estate tax rules, minimising the amount your estate would have to pay.
3. It can give your lawful dependents a sense of security
Estate planning can assure your dependents that you can continue to provide for them materially or financially, even if you are gone. This security is especially crucial if you have very young children, or if you don’t have an extensive family network to support those you might leave behind.
4. You can donate to charitable causes
Some people have no family members to leave their wealth to, or you can choose not to leave money to your family at all. Any money or possessions that you don’t want to give to heirs can be disposed of for philanthropic purposes. A third party can sell your properties according to your wishes and forward the proceeds to a foundation or non-governmental organisation close to your heart.
Just as you have been responsible enough to accumulate and grow your wealth portfolio, so too should you exercise control over how to dispose of it after your death. Estate planning isn’t something anyone looks forward to, and it will undoubtedly be a difficult and emotional task. However, it is necessary to have a legal plan that will not only protect you and your loved ones but one that can also give you peace of mind.
Are you looking for assistance with estate planning? Entrust your wealth to capable hands with our experienced financial advisors. Contact us to learn how we can help you create a plan to secure your future.