You may think of the term estate plan as something that only concerns the rich. This is a misconception that comes to our mind the moment we hear the word estate. Estates are generally something that is owned by a wealthy person. But here, it can be a broad term that can cover any asset that is in your possession.
Distribution of Assets as per Your Wishes
If you haven’t prepared an estate plan in your will or trust, the decision about how to distribute your wealth generally falls to the state. Having prepared documents that state your intentions can save your family a lot of frustration and alleviate their worries about the state decision. You can make sure that your assets are distributed the way you intended. You can also make sure that you find a more tax efficient way of transferring your wealth to family and friends. An experienced lawyer will let you know what taxes are applicable and how you can minimise the transfer taxes.
Preparedness for Any Situation
A lot of people don’t think about what the state of their affairs is going to be after death. While this may be quite a morbid topic, we have to think about the interests of those that are closest to us. An estate plan is essentially a set of documents that set out how you want your assets to be distributed among your family and friends. Also, death is not the only reason to have an estate plan. In the event that you are incapacitated or suffering from a health condition where you are notable to make decisions for yourself, an estate plan can help in protecting your assets. It is quite similar to insurance. It makes things a lot easier when you take these decisions at a tie you are able to; freeing you of any worries that you may have for the future. You can speak with an estate planning lawyer to find out how you can manage your assets.
Deciding on Charitable Donations
Estate planning can have an effect on how you’re remembered after your death. There may be certain charitable foundations that you want to donate to or you may like to have a family foundation to extend your legacy. If there are causes that are dear to your heart, now is the time to decide how your assets can help towards their benefit. When you start planning for these things early on, you can let your family know of your intentions. This way they will be informed of the correct procedure.
Protecting Your Family Wealth
With wealth comes a few issues such as being the target of lawsuits. With estate planning, you can have your name removed from the family wealth and instead transfer it to vehicles, trusts etc. You also need to think about insurance. Your estate lawyer will keep you apprised of what types of insurances can help protect you against legal challenges. Taking steps such as these will ensure that your family’s financial situation is taken care of even at a time that you are not there.