The Importance of Estate Planning
While many of us agree that planning ahead for our long-term financial future is something that we should do, our attention is often focused planning for things that will affect us during our lifetime. But what about afterwards when we are gone?
As you journey further into life, saving and investing all of your hard-earned dollars towards your retirement, you should also keep out eye for how your estate should be handled after you leave this world. While estate planning may appear tragic to think about while you are still enjoying the fruits of your labour, the real tragedy will occur if you leave this world without establishing how your estate will be divided after your death.
Who gets what?
This is the most important question to answer when it comes to estate planning, as failing to answer this question, in the worst cases, can lead to extended legal battles over what is to be done with your estate. That is why it is imperative that an extensive estate plan be set up to cover who will be your beneficiaries, what your beneficiaries will receive, how to give to beneficiaries with the most advantageous tax outcome and ensuring that your financial and if applicable, charitable obligations are met after your life ends.
Do you need estate planning?
While estate planning was once something only associated with only the wealthiest of individuals and celebrities, it has become a growing necessity for even those in the middle-class who have made careful investments throughout their lifetimes. Additionally, business owners of small and medium enterprises (SMEs) have found it necessary to utilise estate planning to ensure that their businesses will continue to function successfully after they pass on.
Regardless of whether you are an individual with a world-class investment portfolio or a successful SME owner, it is highly recommended that you consult with professionals including estate planning attorneys, tax professionals and a CERTIFIED FINANCIAL PLANNER™ who will guide you through the complexities of creating your own estate plan.
Plan for the unexpected
Additionally, it is a wise decision to draft a living will to cover you in the event that you are incapacitated. If something occurs that impedes your decision-making ability, such as coma, you need to make sure that your requests will continue to be made. It will also provide your loved ones with answers to difficult questions such as what to do in the event that you are placed on life support.
Experts can help
By tapping into the expertise of professionals, you can not only spare yourself time, money and mistakes in creating your own estate plan, but you can also gain valuable consultation on how to ensure that your loved ones and obligations are taken care of well after you pass on from this world.