Basic Facts About Estate Planning

What is estate planning if not an arrangement of assets which dish out maximum benefits to the loved ones who survive you? The intergenerational transfer of wealth needs to be a disciplined pursuit because there are just so many facets involved in it. Yes, you can always have the services of legal advisors and they can take you through the legal mesh like on one else but this said, a rudimentary understanding of the subject yourself won’t harm you.

The pursuit behind estate planning

Before all, it should be grasped that a normal will tries to ensure that the estate passes to the spouse, children or loved ones. Of course, if the estate passes directly to a person, it can create upheavals during family law court hearings and bankruptcy events. An able lawyer will carve out a will that refrains from passing the benefits of an estate to those who have filed for bankruptcy or have declared insolvency one way or the other. In addition, a well crafted will minimises the impact that taxation may have on the estate benefits.

Dying without a will

If you die intestate, which is without a will, your estate might pass on to your loved one in a manner not intended by you by a long stretch of imagination. It can give you sleepless nights long after you are gone (if you pardon the rhetoric).

Estate does not fall in wrong hands

The Capital Gains Tax and the interest protection of your loved ones apart, your will must make a consolidated effort not to lose any part of the estate to people outside the family; the kind who try to rush in at the demise of the main pillar of a family.

Apart from tending to estate assets like properties, shares, bank accounts and personal assets, a well-drafted will caters to non-estate assets like Superannuation, too.

What precautions did you take while drafting your will?