Why Estate Planning is Really Important
Not all people know the great importance of estate planning. However, it is actually one good move to ensure that your assets will be taken care of the way you wanted it to be when you’re gone. Although it is not that fun to plan unlike planning a vacation, it surely does a great help to those who will be left behind.
Some people think that estate planning is just for rich people but you don’t actually need to be a millionaire to have some assets that need to be divided among heirs. Even if it’s just your home or some cash in the bank, planning ahead saves your heirs from the trouble of deciding who should get certain assets. Here are the main reasons why estate planning is so important for everyone.
Gives Protection to Beneficiaries
You don’t need to be ultra-rich to have something to pass on the next generation. Even if it’s just a simple vacation home or some bank assets, planning ahead protects your beneficiaries from unfair division of assets. If you don’t have an estate plan, the court will have to decide who gets your assets and, in many cases, the outcome is not that good.
This process can take up a long time and cost a lot of fees plus the court doesn’t know who deserves your assets the most. With an estate plan, you can be sure that everything is divided the way you want it to be. Start planning now by working with one of the best estate planning lawyers Melbourne.
Keeps Your Children Protected
Although it doesn’t feel good to plan this since not everyone thinks of dying early, an estate plan can help protect your children in case both parents pass away before the children are 18 years old. You can include in your estate plan the guardians whom you would entrust your children just in case the unexpected happens. Without a plan, the court will be the one to decide who gets to take care of the kids.
Prevents Family Disputes
When the court decides the division of assets, some members may not be in favour of it thinking that it is an unfair decision. This could lead to family disputes that may even end up in court when things get too complicated. Creating an estate plan is one of the best ways to prevent this from happening. You’ll be the one who decides the division of assets on people whom you think are most deserving of it.
Another perk of having an estate plan is the lower tax rates your beneficiary can enjoy when he or she receives the asset. Although they still have to pay some tax, it won’t be that big unlike when there is no estate plan at all.
An estate plan is one of the good ways to keep things in order when you can’t do it anymore. Start planning yours now and have peace of mind that everything will be handled properly when the time comes.