What's the first thing you relate to when you hear "estate"?
Is it not reminding you of fancy painting-filled living rooms, probably from the mid centuries worth millions of dollars. Or probably you imagine an estate filled with vintage cars and modern cars and yachts and a locker filled with gold and diamond jewellery!
But it might come as a shocker that no, it's not always the fancy bits and bobs that matter or that only high net worth individuals can only do estate planning.
Even you, if you have assets, can plan.
What Exactly Is Estate Planning?
If you want some things to be in a different manner and want a written record of your intentions and wishes, you need to hire an estate planning firm to distribute the assets according to your desire.
Here are some ways in which you will find that estate planning is crucial for every adult
Protects Your Children
God forbid something happened to you shortly, and have a family of 2 children who will take care of them when you are gone!
Without any written statement like an estate plan, the state has no choice but to appoint a legal guardian if none of your parents or your family friend come forward.
If a minor child has no one estate plan left by parents, they will probably enter a foster system and become a state ward.
Would you want that for your child?
You should name caregivers for your children because if both parents die before they reach the age of 18. This will make sure they are treated in a manner that you approve. If you don't name these wardens in your consent, the courts decide who might support your family.
Estate Planning Goes Beyond A Will
Many people think of a will and an estate plan as the same thing.
Most people interchange the terms will and estate planning, and while they both look into matters after your demise, they are both different. Estate planning includes so much more than just plans and distributions.
Estate planning gives powers to an attorney to make medical or financial decisions on your front when you cannot do the same. If suppose you are bedridden or unable to convey the message, your attorney will have the right to speak of your demands on the medical front.
You can also see whom to make your beneficiary and who will receive the amount from health insurances, funds and more.
If you have only old parents or kids left behind it would be difficult for your young children or anyone left behind to clear your assets or get rid of your belongings because it is an emotional matter. You can hire services for deceased estates to clean up your place to make things easier; for example, if you live in Melbourne, there are fantastic cleanup services for deceased estates in Melbourne who do an excellent job of making sure everything is in order.
Large Taxes Are Avoided
Although estate taxes are well-known, you can plan to avoid leaving your family with a large tax bill.
A good plan, such as establishing trusts, making irretrievable gifts, or opening joint accounts, can ensure that your heirs don't sit around giving half of their inheritance to the state.
All of these things effectively deplete your estate's funds. However, to carry out these actions, you'll need an estate plan, and this is when - estate planning comes in!
To summarize, we believe this has swayed your opinion on estate planning. It provides you with peace of mind in life and provides your family with guaranteed full inheritance, and ensures that your family are safe and secure among their loved ones just like you wished.