Everyone has an estate, be it small or big. It may include a car, a home, financial investments, insurance policies, bank accounts etc. Death is inevitable and whimsical and no matter how small or big your estate is, you cannot take it with you when you die.
This is why you need estate planning- to make a plan in advance in order to protect your estate after your death.
The process of anticipating and ascertaining how an entity’s assets will be preserved, handled or allocated after his death is called estate planning. You can start estate planning with the most basic step that is making a will and naming your beneficiaries.
A will is a legal document that states to whom an individual’s property or assets will be transferred after his death.
Reasons Why Estate Planning Is Important?
A proper comprehensive estate plan can take care of your loved ones and protect your beneficiaries or young children, if any. Also, proper estate planning helps to reduce the estate tax that your beneficiaries have to pay. It also eliminates the chance of dispute among family members during the distribution of assets. There are four main elements of an estate plan; these include a will, a living will and a power of attorney, and a trust.
People of every age can initiate an estate plan according to their needs. There’s no specific time or age to plan your estate. A 30-year-old can think of planning his estate to suit the needs of his dependents, similarly a 60-year-old can take the help of Estate Planning too. There’s no surety that the chosen or admired person only is going to receive the assets in his absence. In this case, he needs to prepare a will so that the assets are transferred to the desired person.
In a few words –
- Estate planning is important for everyone, no matter their age or wealth.
- Estate planning avoids taxes and legal tie-ups and ensures funds are bequeathed as you wish.
- An estate plan appoints the right people to take care of your kids and even you if you’re incapacitated.