The Importance of Estate Planning

Why Is Estate Planning Important?

Estate planning is last on the list for most people and isn’t ranked as high on people’s lists as it should be. Most people spend more time planning holidays, choosing what car they want, or simply choosing where they’re going to have their night out this weekend than who is going to inherit their estate when they are no longer here or capable, although it may seem like something that can be put off it really cannot. Estate planning simply helps you decide who will inherit everything you worked so hard for in your life.

You may think estate planning is only for the rich or famous. This simply isn’t the case without a plan in place the whole process can become time consuming and costly for your nearest and dearest. You may think that because you don’t have a huge amount of money, a lavish estate or expensive assets that an estate plan isn’t necessary so before you decide read the four reasons below to avoid detrimental consequences.

Benefits of Estate Planning

Protects Your Beneficiaries

Times have changed and it’s not just the wealthy who need to have an estate plan in place. Many middle class families need to put a plan in place should anything happen to the main financial provider in the home, it’s not just the super rich who invest and do well in stock market and real estate, they both accumulate and it’s something that can be passed on to beneficiaries. Even if it’s a small home or little amount you’re leaving behind if there is no plan in place you technically have no control over what happens to your assets. With no plan in place it will fall down to the legal system and the courts will ultimately decide who and what assets are given to who, this can sometimes become a costly lengthy procedure and things can turn nasty for some families. Ultimately a court doesn’t know the ins and outs and simply doesn’t care who did what, or why you should reap certain benefits.

Ensures Young Children Are Protected

Nobody wants to die young and leave their children behind but unfortunately it does happen and it’s important to plan for the unexpected. Will portion is part of an estate plan and these are the types of situations it comes into play, if you want to assure your children are cared for and loved in the way you wish. You must appoint and name guardians should you or both parents pass before your children reach the age of 18, if there is no plan the courts will decide who and how your children will be raised.

Spares Your Beneficiaries A Large Tax Bill

Estate planning ensures your loved ones are looked after, so all in all you’re also protecting them from the IRS (Internal Revenue Service) as well as estate planning transferring assets is an option decreasing the possible tax burden brought upon them. Estate planning reduces the risk of damaging your beneficiaries financial position and reduces the risk of huge tax bills.

Avoid Family Feuds/Arguments

We never really know how bad a family can be until someone passes away and everyone wants a piece of the pie. Finances and assets can sometimes bring out the worst in people. Sometimes siblings think they’re entitled to more than others, rifts can occur between partners and immediate family and believe me things can get messy. In some cases family’s end up In court and rifts are caused and families are divided.

Getting Help With Estate Planning

Estate planning is hugely important as it can stop future arguments, your estate and finances can be divided up how you wish and you can voice why you wish this to happen. It’s completely up to you how you wish to divide your assets whether it’s equally or not putting your plan in place is critical to avoid anything we discussed previously. Should you require help with estate planning, then please don’t hesitate to get in touch with The Lost Coin Financial Planning Ltd today to see how we can help you.

Categorised in: Estate Planning, Inheritance Tax

This post was written by duodigitaluk@gmail.com