Things You Never Know About Estate Planning
What is estate planning?
Estate planning is the preparation of everything you own that will go to the right people when you die. This includes land properties, vehicles, bank accounts, investments and insurance, furniture, jewelry, and other items that have value. It is not easy to plan your estate. It has a complicated process and would be better if you have your lawyer, an estate consultant, or a trusted friend that can help you with the planning, documentation, and fulfillment of your will.
Importance of Estate Planning
· It is important that your estate will never go to an undesired person. You have to ensure the names of beneficiaries who will enjoy the things you left.
· Your estate (like investments and insurance) can provide financial support to your family so they can continue living.
· It is by law that before they receive their inheritance from you, they must pay a considerable amount in form of tax, and with estate planning, they can minimize the cost.
· You can also eliminate disputes if you properly name your beneficiaries and specify their share in their inheritance. It can minimize disagreements between your family.
· Having a plan according to its proper places means you can secure the future of your loved ones and you will now have peace of mind.
When to Start Estate Planning?
Estate consultants recommend starting estate planning when you become a legal adult, at the age of 18. For you are already responsible and responsible enough to manage your finances. No matter what age you are, if you have these life occurrences, you can now start planning your estate.
· Savings account – designate where your funds would go in the event of your death to make sure that the account will be passed on to your loved one or relatives.
· Owned home property - this is a huge sign that you have to properly plan your estate to eliminate court proceedings in the time that you left.
· Marriage and Remarriage – it is important that you also start planning your estate if you have combined assets to know what will happen in the event of the loss of your spouse.
· Travel – if you frequently leave the country for long periods, it is recommended to update your estate before going on trips.
· First child, and each one after – Think about guardianship and financial security of your child in case something bad happens to you.
· Inheritance of money or other assets – with more assets you have, it means there’s a lot of things to take good care of. Update your estate plan to show any additional money or assets in your belongings.
· Divorce – updating of previous estate plans with your former spouse is also important.
· Grandchildren or births in the family – it is good to update your will and ensure that they are well managed with new family members to consider.