Making sure you have appropriate measures and plans in place as early as possible can help you to avoid any unwanted results that come with how your estate assets will be distributed. Without undertaking estate planning, your family may face the burden of having to properly settle your affairs long after you have passed. Here are 4 good reasons to invest in estate planning early, and determine the exact details of who will be receiving what assets of your estate.
What is Estate Planning?
An estate plan covers all of your assets to ensure that they are passed on according to your beneficiaries as outlined in the plan in the most efficient way possible. Solid estate planning includes tax effective Wills to protect the interests of your beneficiaries and your estate in the event of your passing.
Now, let’s look at some of the benefits that come from effective estate planning.
Benefits of an Effective Estate Planning
Protecting Your Loved Ones
Protecting your loved ones is something you want to ensure you keep doing, long after you’ve passed away. Your estate planning should involve transferring your assets to your loved ones in the smoothest possible way so that they are not hit by a significant tax burden. Having a well thought out estate plan in place allows you the peace of mind that you will be taking care of your loved ones once you are gone.
It will also allow you to protect younger children, as in the event that you pass away whilst they are still young, you’ll want to nominate their guardians. Without estate planning in place to name these guardians, you’ll be putting this significant decision in the hands of the court.
Avoiding Family Disputes
When it comes to family disputes and estate planning, individual family members can often disagree on what the best plan of action should be. Engaging in estate planning well in advance can help make sure that these family disputes don’t arise in the first place, or mitigate their severity. The last thing you want is for your passing to create a division in your family, or creating even more stress than they are already experiencing.
Appointing an Appropriate Executor
By appointing an appropriate executor of your estate planning, you’ll be confident that the contents of your will and plan will be carried out in an effective manner. The executor is responsible for the ongoing management of your assets until the final estate administration has been completed. You’ll be able to choose more than one individual or a trustee company as your executor, taking the load off of your family members when it comes to enacting the plan. Nominating multiple people as executors is a more common occurrence in estates where there are complex assets or many different entities to cover.
Estate planning will also give you the opportunity to nominate who controls your assets if you find yourself in a state where you are no longer capable of looking after your finances, or after you have passed away.
Planning for the Unexpected
Although it’s not something we like to think about or discuss with our loved ones, planning for the unexpected is something we have the responsibility of doing. Estate planning is an important part of this process and takes the worry out of your life, knowing that your family will be taken care of upon your death. Even if you don’t have a large family or any children to care for, you need to think about what will happen to your property, and how other assets may be distributed.
No matter the size of your estate or the types of assets you possess, it is beneficial to speak with estate lawyers who can help ensure your estate planning covers all aspects of your life effectively.
The contents of this blog are not intended to provide legal advice. You should not rely on this information as legal advice and instead should always speak to an accredited lawyer for professional advice on your situation.