Importance of Estate Planning
Estate planning sounds like managing too many properties and a lot of paperwork that only the rich people need to do. But in reality, estate planning is something every person should do in order to pass on all their hard earned estate to the most deserving ones. Most of us fail to do the estate planning, especially in the younger days thinking there is still time for us to retire. Estate planning is not only to safeguard your possessions after your death but also when you are still alive. If you have not considered creating your estate plan yet, read this article to understand why is it important.
1) It does not help only after death: Many think Estate planning is something that comes handy only after your death. But planning your estate can also help you when you are not able to take the decisions for yourself. Like when you are seriously ill or injured and not able to take the financial decisions for yourself. It can also protect your assets from being misused in case you are not able to protect them yourself. Creating power of attorney to take your financial decisions or health proxy, while entrusting your near and dear ones, can help to keep your health and estate safe.
2) Distribute your wealth as per your wish: It is difficult to decide what to do with your assets after your death if there is no legal document or will documents. Most of the time the legal authorities decide it and it may not be exactly what you had thought of. So it is better for you to distribute all your belongings as per your wish instead of waiting for the legal department to do that for you.
3) Reduce transfer tax: You will have to pay a huge amount for transfer tax if you want to pass your property to your family, but doing that after your death through the will can save you a lot of money on transfer taxes. You can plan to transfer all your investments with a minimum tax on transfers. Learn more about modern but simple ways of investing your money in cryptocurrency trading.
4) Prepare your family members to receive the wealth: Passing the assets from one generation to other is important as passing the culture, values, and beliefs. The family should be groomed right from the young age by honest and open discussions about the wealth that can help them get clarity without assuming anything.
Estate planning is a complicated and emotional process that involves not only a lot of paperwork but also taking some strong decisions. It is better to start planning your estate from earlier so you and your family can be prepared for it.