Properties, assets, and money —- these define financial wealth for each and every one of us. These things can be passed from one family member to another, and even from one generation to another. As we cannot get hold of these things when the inevitable death comes, what should we do so we can still retain them to other individuals if we get deceased?
To be able to maintain such worldly wealth in place, many people do estate planning. This is the process wherein an individual or a family member (can be a friend as well) arranges the transfer of assets in anticipation of death. Moreover, it aims to preserve the maximum amount of wealth possible, whether to just one person or a group of people and is a flexible strategy to maximize any assets prior to death.
The Importance of Estate Planning
In the event when a family member dies without an estate plan, it can lead to various complications within family members. Given the materialistic side of life, everyone just wants to grab a bigger bite out of a pie. To avoid this type of circumstance within the family circle, estate planning should come into place.
Estate Planning Avoids Family Feuds
Given that the principal holder of the assets allocates specific shares for the beneficiaries, it will prevent anyone from wanting more from what is allocated to them. The will in the estate plan is unamendable, so should be followed and uncontested by the beneficiaries. The choice in whoever controls what will also take into place, either due to death or mental incapacity.
Estate Planning is More Concise Than a Will
A will is merely a written handout wherein you trust your assets to a person. Nonetheless, an estate plan can do so much better; estate planning is complete and concise planning where you are able to instruct where your assets and liabilities will go, and how they must be handled. It can also consist of a special power of attorney, where appointed individuals can make financial and medical decisions on your behalf in case you are incapable of doing them yourself. This gives you the freedom to act accordingly even if you are incapacitated, making it more concrete if the unfortunate time occurs.
Estate Plans protect and secure minors
Although estate planning is mostly done by the oldies and retirees, this should not prevent adults, especially parents, from doing so. Estate plans also include liabilities like children, in a way that parents are able to decide who must gain custody of their children by the time they die before the children turn 18 years old. Parents can also allocate some assets to their children, wherein the custodian may have the sole responsibility to make use of such to take care of the bereaved children.
Apparently, there is no inheritance tax in Australia, unlike other countries. The inheritance will be given to the beneficiaries tax-free, but will still be subject to taxes in the future ℅ the beneficiary e.g businesses and estates.
Estate Planning is a way for anyone to be confident and put their assets to people they trust. It is better than a will, as it is composed of specifics as to who takes what and how the beneficiaries will take care of them. More than just a plan, it is deemed to create individual gains from generation to generation, seeking to adhere and take care of your assets even if you are long gone.
Furthermore, contrary to the popular belief that estate planning is just for the rich, it still benefits different individuals from different social statuses. Even so, it is also beneficial to parents, regardless of age as they are able to entrust their children to someone they trust. Estate planning provides a sense of security, insurance, and protection for everyone.