As you know estate planning is the preparation for the transfer of a person’s assets after his or her death so this is something of great significance. Estate planning is not just confined to the rich and famous. Even if you have little savings, minor children or pet and a small abode, you will like to have a say about them when you are gone.
Your mindset may vary from others but almost everyone can find estate planning as helpful.
Your estate planning may include the following:
- Power of Attorney
- Guardianship directions
- Insurance account
If you are done with knowing about the estate planning, next important question is whether you need it or not.
There are some reasons you need an estate plan:
When you don’t make an estate plan then you have to face the probate for distribution of your assets. Nobody wants that so. So avoiding probate is the primary reason for going for estate planning.
They say that poor people are more in need of estate plan than rich ones because they might not be able to pay probate fees.
Protection of Assets
Protection of assets is the prominent reason for having an estate plan.
Estate planning helps you protect your minor and adult beneficiaries. Beneficiaries, if adult, can sometimes make bad decisions due to personal fault or outside influence. Estate planning manages the distribution of your assets and protects the beneficiaries from going in wrong direction.
Avoiding Family Fights
It is very likely that after your death, your family falls to fights over your property. To avoid this mess and protecting your family from developing riots, estate planning is the best option.
While making an estate plan, there are at least 5 things which you should keep in mind.
An up-to-date Will
It’s important and in some cases essential to make a will before you leave this world. If you don’t make a will, it’s very probable that your family has to face probate. Also, the disloyal family members or other interested parties may take advantage of it through fraud.
Taxes Affect your Estate
Through estate planning, you can minimize the burden of taxes for your beneficiaries. You could avoid tax depending on the person whom you designate as your beneficiary.
Power of Attorney
Many people hire an enduring power of attorney (EPA) when they are making a will. An EPA is someone who manages your affairs when you are not able to do that by yourself.
Enduring Power of Guardianship
Just like an EPA, an enduring power of guardianship is someone who makes medical decisions for you and takes care of your health when you are not mentally stable as to perform this by yourself. It’s really an important and sensitive decision.
Last but not the least, one of the most important decisions you make while estate planning is to hire a trustworthy executor who distributes your assets according to your wish.
Seek for Will and Probate Lawyers in UK for estate planning.