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A Beginner’s Guide to Estate Planning and Succession

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We work hard to build assets throughout our life. Probably almost every one of us builds these assets to provide financial security to our loved ones, right? However, have you thought about what will happen to those assets if you unfortunately die? That’s where estate planning helps you to manage them properly so that your assets pass smoothly to your next generation.

If you are not aware of estate planning and its importance, read this post till the end. You will understand all the essential aspects of estate planning, hiring the right estate planner, and more.

What Is Estate Planning?

In simple terms, estate planning is the process of passing your assets to your next generation of loved ones. It helps you choose whom and how you want your financial assets, investments, and properties to transfer after your demise. Here are two important terms that you should be aware of when planning for the estate.

Wills

A will is a written legal document that declares your wishes regarding the transfer of your property to your children, spouse, or loved ones, which will be carried out after your death. A Probate court deals with the administration of wills and estates of a deceased person and ensures the legal documents’ authenticity.

Trusts

Unlike a will, trust is an agreement between the trustor and trustee for the transfer of ownership of the property for the beneficiary or beneficiaries mentioned in the trust deed.

No matter how you want to transfer your property, an experienced estate planner can help you plan your estate prudently.

Choosing the Right Estate Planner

Estate planning requires some skills and expertise. Since it’s a dynamic process, it’s not wise to do it yourself. Seeking help from a professional can help you build a prudent estate plan.

However, you need to choose the right estate planner based on some critical factors that matter. Don’t focus more on their gender, age, office location if they have the right qualities and experience.

Ensure that you ask about the following aspects while you are interviewing them:

  • Ask about their area of practice.
  • Do they help you for a Trust apart from Wills?
  • Ask about their experience and their journey in this field.
  • Be clear about the fees and how they charge for their service.

Apart from that, read some testimonials and find references from your friends and families. Here are some tips if you want to plan your estate on your own.

Benefits of Estate Planning

Estate planning can greatly benefit your family and successors regardless of the amount of wealth created. Here are some potential benefits of estate planning.

Financial Benefits to Your Loved Ones

A proper estate plan will help your loved ones to get financial benefits. We all know that death is certain, but we are uncertain about its timing. So, a long-term estate plan can help and protect our family financially.

Avoids Disagreements in Your Family

Your legal heirs may not know about the financial and legal complications. This may lead to disagreements and disputes within the family. Drawing a prudent estate plan can help to avoid such situations in your family.

Ensures That You Pass Your Assets to Your Family

The law might not consider your preferences for distributing your assets if you pass away intestate. The court may distribute your assets even among your distant relatives, which you may not want to leave with.

Tax Benefits

Planning your estate prudently might help you to reduce the tax on your assets. For example, you can gift your properties to your loved ones when you are alive. The court may impose high taxes on your assets if you die intestate.

Conclusion

I hope you have got some insights into estate planning, its importance, and how you can do it properly. Now, it’s your responsibility to plan for the well-being of your family and ensure that your assets are properly inherited after your demise. Since estate planning is a dynamic process, don’t hesitate to seek a legal opinion.

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