Estate planning is organising and managing your assets and affairs in the event of incapacity or death. The basic components of estate planning include creating a will, setting up a trust, designating beneficiaries, and making arrangements to manage your assets in the event of your incapacity. Other important considerations in estate planning include planning for end-of-life care, minimising taxes, and protecting your assets from creditors and lawsuits. Estate planning is a constant process and should be updated and reviewed regularly to ensure that it remains aligned with your goals and circumstances.
Estate planning is important because it allows individuals to plan for the distribution of their assets and manage their affairs in the event of incapacity or death. It can also help minimise taxes and other costs associated with transferring assets and ensure that assets are distributed following the individual’s wishes. Additionally, estate planning can help protect an individual’s assets from creditors and legal judgments and provide for the care and support of family members. It is a way to ensure that your wishes are followed and that your loved ones are taken care of after you pass away.
Five estate planning tips–ensure your wishes are honoured after life.
1) Create a will
A will is a legally binding document outlining how your assets will be distributed upon death. It can also name a guardian for any minor children and provide instructions for your funeral and burial.
2) Review and update your will regularly.
It is important to review and update your will regularly, especially after major life events such as marriage, divorce, the birth of a child, or the purchase of a significant asset.
3) Consider a trust
A trust can be very useful with estate planning, as it allows assets to be managed and distributed according to specific instructions while avoiding probate.
4) Make sure you have adequate life insurance.
Life insurance can provide financial security for your loved ones in the event of your death and can also be used to help pay for end-of-life expenses.
5) Review your beneficiaries
Review the beneficiaries on your accounts and insurance policies to ensure they are up to date and align with your estate plan.
