Everything You Need To Know About Estate Planning
“Estate” seems to have become a term that is associated with the wealthier in the world. However, the truth is that it doesn’t matter how large or modest your belongings are, you have an estate. You estate compromises of everything you own. This includes your home, investments, other real estate, cars, cash, savings accounts, jewelry, clothes, and more. When you consider everything that an estate compromises of, it is easy to see why estate planning is so important. This blog post will reveal more about what it is and what you should include when making such a plan.
What is estate planning?
This involves making plans for the transfer of your estate after you have passed away. After all, you will surely want to have control over who receives what. Estate planning guarantees your wishes will be carried out once you have died. Moreover, it is pivotal because it ensures you pay the least amount of taxes, court costs, and legal fees. You can ensure this is the case if you have the assistance of a living trust law firm, as they will talk you through the best way to minimize your taxes and maximize your loved one’s gains. They will also make sure that your estate plan is put together properly so that it is valid.
Why is estate planning important?
Often it is hard to quantify the importance of something when you are considering something that seems so far into the future. Who really wants to think about death? Yet at the same time, ask yourself this… do you really want to leave your family in tatters? They are going to be devastated enough without having to think about sorting out your estate. Plus, would you rather your belongings go to the taxman or the people you care about the most? When you consider these questions, it is quite easy to see why an estate plan is important. Yes, it is a horrible subject. However, once you have tackled it, you will feel a lot better for it, and you will only need to address it again if there are any significant changes in your life, for example, if you go through a divorce.
What can be included in your estate planning?
Like most legalities, estate planning can be complex. This is why you need a financial planning adviser when planning your estate. They will be able to ensure your exact wishes are carried out and that everything is handled above board. Look for experts in this area with plenty of experience. You need to find a company that will promise to put together a plan that reflects your values and your family’s needs whilst also ensuring there is minimal legal hassle along the way.
So, once you start liaising with your financial planning adviser, what will be included in your plan? Of course, the obvious answer is that you will state who is going to receive what. Who do you plan on leaving your home to? What about your car and your money in the bank? Perhaps you have a special piece of jewelry you would like to leave to your granddaughter? Estate planning encompasses all of this and more. You can also pass along your values as well as your valuables. If you would like to leave instructions regarding religion, education and such like, you can do this. Of course, you cannot guarantee that people are going to accept your values as freely as they will your valuables. Nevertheless, this is something a lot of people like to do because they want to leave a lasting message.
Make sure you cover all possibilities. For example, what if you become disabled before you die? What sort of care would you like to receive? This all needs to go in your estate plan. You should name a guardian for your minor children as well. In addition to this, you will want to consider life insurance so that you can provide for your family once you are no longer physically able to.
This merely scratches the surface of what an estate plan consists of. You need to give a lot of contemplation to your estate plan because you want to make sure that you get it right.