Contrary to popular belief, estate planning is not exclusive to older wealthier people. It is, in fact, a process that everyone should consider, regardless of age or financial status.
Hiring estate planning professionals to help you make plans can protect your family and your finances in the long run. This will ensure that your wishes are carried out and your loved ones are taken care of when you are no longer able to do so.
Why look into estate planning?
Estate planning is more than just having a will. While a will is important for ensuring that your assets are properly managed after your passing, an estate plan goes beyond that. It takes care of every single detail, providing comprehensive protection and guidance for your estate.
Here’s a look at some of the benefits of introducing estate planning to your plans for the future:
Prevents conflict
One of the key benefits of estate planning is the prevention of problems between siblings and family members. By clearly outlining your wishes and ensuring that everything is well-documented, there is no room for arguments or differing opinions on what was said or intended. This can help keep everything calm during what can already be a difficult time.
Minimises taxes
Another significant advantage of estate planning is the potential to minimise taxes. Professionals well-versed in estate planning understand the intricacies of handling assets and can help you structure your estate in a way that minimises tax liabilities. This ensures that the government does not take a significant portion of your children’s inheritance, allowing your loved ones to fully benefit from what you leave behind.
Provisions for children
Estate planning also provides a means to protect young children. In the event that both parents pass away, an estate plan can outline specific instructions on what should happen to the children. This ensures that their wellbeing, custody, and financial needs are addressed according to your wishes.
Saves time
Estate planning saves time and streamlines the process for your loved ones. By appointing someone to handle your affairs beforehand, you alleviate the burden on your family members during an already emotional and challenging time.
With a clear plan in place, the designated person can efficiently manage your estate and distribute assets according to your instructions, saving time and reducing stress.
Help loved ones right now
You might realise while you’re planning what to leave behind for your loved ones that you can provide financial support right now. This could be in pace of leaving an inheritance.
One of the reasons why you might consider tapping into funds to give to your children now is that life expectancy is higher now. This means that beneficiaries are often receiving their inheritance at a stage where it’s too late to use it towards important financial payments, such as buying a house.
So, it may be that giving financial support now could help them make important steps for their future. It’s worth checking first before you do this, however, in order to avoid negatively affecting your own finances in later life. You’ll also need to check gifts like this won’t impact on inheritance tax.
Planning early for the future could be ideal for you.
