As soon as we hear the term “estate planning”, we think that it is only for those people who are utterly rich and influential. However, the reality is different. To know whether you need estate planning or not, you first need to understand what estate means, what estate planning involves, and why it is important. So, in this post, we will talk about all these topics so that you know if it’s time to consult an estate planning lawyer.
Introduction to Estate Planning
An estate is typically a collection of everything that you own, including your real estate property (such as your home), vehicles, cash, and other assets.
Once you are gone from this world, all these things will go somewhere. Now, it depends on you where your assets will go – to your spouse, children, sibling, someone you know, or elsewhere. That’s where estate planning comes into the picture.
If you have done estate planning and revise it when you buy something new or sell your belongings, you can rest assured that your assets will be where you want them to be. If not, you will never know whether your assets are in the right place or with the right person after your death.
So, if you want your assets and property to get transferred to one or more surviving loved ones after your demise, you need to establish a formal estate plan.
What does estate planning involve?
Estate planning allows you to document your wishes, explain how you want to distribute your estate, and specify exactly who will ensure that intended beneficiaries receive the assets in the time and manner that you intend.
An estate plan includes a will that specifies who you want to receive each of your assets, who will be your children’s guardian, and who will act as the overseer to ensure that your estate is being processed as per your estate plan.
It will also include a power of attorney who will make financial decisions in case you are ill and cannot speak, pay your bills, manage your investments and finances, and make legal or business decisions.
Apart from this, an estate plan document also mentions your medical power of attorney to make your medical decisions if you are unable to do so, a living will that documents your end-of-life preferences, and a trust that controls how and when your assets will be distributed.
Why Do Experts Recommend Estate Planning?
Estate planning is considered paramount because of the fact that it covers what happens to your property, cash, and other assets after your death, who will make legal and medical decisions for you if you can’t, and how and when your assets will be handed over to the intended beneficiaries.
Apart from this, estate planning is also considered important because it helps:
- Protect your assets from creditors and unintended beneficiaries
- Minimize wait times for disbursement
- Reduce projected estate and inheritance taxes
- Minimize the need for probate
Who Needs Estate Planning?
Many people think that only rich families with grand mansions and acres of property need estate planning. While others think that they are too young to do estate planning. On the contrary, for estate planning, it doesn’t matter how young you are or how wealthy you are. The only thing that matters is whether you have assets or not. If you have assets, it means you have estate and thus, you might need estate planning. And it’s never too early to have an estate plan.
If you are looking for estate planning lawyers in Harlow, please feel free to get in touch with Boyletts Law firm.
