Purposes Of Estate Planning
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Estate planning is all about making sure that your property and savings are inherited by the right people and passed on in the way you decided to. The money and assets of a person matter to the extent of who is inheriting it and how they are going to dispose of it. The will of a person plays a large role in how they live the rest of their life.
Estate planning also helps in saving tax. The will what you create actually pays a lot of tax, so you need to make sure that you are diverting you funds the right way. Moreover, with advanced planning they will attract the least amount of taxes.
The integral part of estate planning is to be up to date, and also state your wishes accurately. There are several reasons why people opt for estate planning. One reason is that it reflects the exact wishes of the person and with a will, the beneficiaries are in a way protected.
The disadvantages of not having estate planning are as follows:
Beneficiaries will fight against the property. When your will is not clearly mentioned, and it gives rise to ambiguity, in which case your own family will resent. Family starts fighting their own siblings when beneficiaries are not clearly mentioned in the will. Having a will, helps the family develop better relationships.
Here are some of the reasons why you should have estate planning:
Avoiding the proceedings to the probate court is the biggest sensible thing that anybody can do. A probate court could prove to be very expensive. So it is better to avoid all costs. Even if a beneficiary does not have too many assets to claim off, the lack of will can end up in a probate court and the costs of it are too high.
If you plan your estate early, you can avoid the losses from estate taxes. There is a significant amount that an individual has to pay from estate planning and inheritance. For saving taxes, you need to make sure your planning is up to date. Even if you do not have many beneficiaries to list, you will save on taxes.
By estate planning you are also protecting your assets from unseen creditors. You never know who can file a lawsuit to gain your assets. Estate planning is a way of making your financial gains sound for your future generations. Everyone from your spouse to beneficiaries can be protected through estate planning.
More Articles :
About.com; Wills and Estate Planning: Top Five Reasons Why You Need an Estate Plan