An estate plan is very important. It will ensure that your wealth is distributed according to your wishes after your death. If you die without an estate plan, then your assets will go to your spouse or your oldest child. If you don’t want that to happen, then you need to plan your estate. It’s also very important if you want your money to be donated to charity. By carefully planning your estate, it will stop arguments from taking place after your death.
This article will tell you six reasons why you need to consider an estate plan:
Many people avoid planning their estate because of how complicated they think the process will be. In reality, an estate plan isn’t complicated at all. According to the legal specialists from RedWoodFinancial.co.uk, an estate planning lawyer will handle everything for you, from long-term care fees to inheritance tax. This makes the process extremely straightforward. Because of this, you needn’t avoid planning your estate for fear of stress or headache. With a proper solicitor, the entire process will be dealt with extremely efficiently, which allows you to focus on other things and continue living your life stress-free.
If you don’t have an estate plan arranged when you die the government will decide how your assets are divvied up. This can cause a lot of problems for your family. When inheritances are involved, distant family members will show up expecting their share. This can ultimately lead to infighting and arguments, not to mention the people who you want to inherit your assets might be left out altogether. Having your estate planned allows you to clearly define who inherits what. This allows you to dispose of your wealth the way that you want, not how the government wants.
Plan for Charity
If you intend on leaving your wealth to charity, then you need an estate plan. Without it, as we have already mentioned, your assets will be divided up amongst your family. There is absolutely no way that you can leave your money to charity unless you create an estate plan. Leaving one’s wealth to charity is a fantastic way to leave behind a great reputation and legacy. Leaving your money to charity is a great way to make a final contribution to a cause that you felt strongly about during your life. If you want to leave your wealth to charity but haven’t decided which charity to leave it to, then you should consult a directory and find one that appeals to you.
If you have accumulated a large amount of money throughout your life and intend on passing it to a loved one when you die, an estate plan will help you to do this in the most cost-effective way possible. Transfer taxes are inevitable if you want to pass wealth on, but there are ways that they can be minimized. Your estate planning solicitor will talk you through all of this and explain how you can minimize the amount of tax that you pay. They will work with you to create a customized wealth transfer strategy that reduces the amount of money your family loses out on from their inheritance.
Protect Your Family
As we have mentioned abundantly, if you do not leave a will then your family will have to fight for their share of your inheritance. In addition, distant relatives will show up expecting a share. If you care about your family and want to ensure that they will be financially protected after your death, then an estate plan is very important. An estate plan will allow you to ensure that your family will be looked after. The thought of one’s family suffering after one’s death is dreadful. By planning your estate, you can rest easy knowing that whatever happens to you, the people that you love will get what they deserve and won’t suffer.
Prepare Future Generations
If you have a lot of wealth, an estate plan will allow you to prepare future generations for managing money. An estate plan can include very specific clauses. These clauses allow you to manage how your money is passed down to your children. Some open trust funds, while others arrange for their children to receive a fixed monthly payment. Others invest money for their children. When your relatives receive your wealth, there’s a chance that they will spend it all and that they won’t take it seriously. Managing the way that they receive it will ensure it lasts them longer and that they won’t [or can’t] misuse it.
There are many reasons to consider planning your estate. We have mentioned the most important here. You can create your own customized plan by contacting an estate planning firm and discussing everything with them.