No matter what, you're going to die. You will need an estate plan - heres 5 reasons why
1. Have control over who gets what
If you don’t have a will in place when you die, your assets are distributed according to your state’s law. This can be particularly problematic in today’s society where blended families are much more common. Governments distribute assets according to intestacy law, and don’t take into account individual circumstances.
Estate planning is increasingly important under all circumstances, particularly when you:
• Have children or dependents • Own property • Have a family business that will need to be passed on • Want to make a gift to charity • Have capital losses • Have beneficiaries that may need asset protection • Have family debt • Want flexibility in distributing your assets
2. Reduction of estate taxes
The circumstance of losing a significant proportion of an estate to the payment of state and federal taxes is a great motivator to finally get an estate plan in place. With basic planning, typically through the mode of trusts, people can minimise or eliminate taxes associated with their estate to ensure their loved ones are left with as many assets as possible.
3. Peace of mind for you and your family
If you passed, the last thing you would want while your family is dealing with loss emotionally to be worrying about finances. Estate planning is important to ensure the financial security of your family in the circumstance that something happens to you. By having a valid estate plan in place, you can be comfortable in the knowledge that your family would be protected in unforeseen circumstances.
4. To ensure the validity of your will
By having a professionally drawn estate plan you will have the peace of mind that your will is valid in accordance to the law. Although DIY estate plans are possible, it is likely that mistakes will be made and disputes will have to be settled in court, which is a costly endeavor. Don’t compromise the financial security of those who you leave behind, it’s much better to prepare now to save a lot of stress in the future.
5. Ensure your wishes are followed
Estate plans include more than just your will, but also wishes regarding funeral arrangements and instructions in the case of a medical emergency (e.g. sustaining medical intervention or not). These wishes are very personal, and when you are unable to communicate your decisions, your estate plan talks for you.
Matthew Carberry is the Senior Wealth Adviser here at Verve Group and offers outstanding solutions for his clients. Get in contact today, email Matt on firstname.lastname@example.org or call Verve Group on 08 8120 4877.