How Estate Planning Will Benefit You and Your Family: Why You Should Start Thinking About Your Death!
We all dread the day when we get the news of a loved one passing away…
The pain of grief and the sense of loss is immense, sometimes debilitating. Now imagine that you are the only one who needs to organise the funeral, and you have no idea where to start…
Or your loved one that had passed away suddenly, had not left a valid will to distribute their estate properly and in accordance with what they wanted. Leaving it up to intestacy laws of your current state, which could be the complete opposite of what you or your loved one wanted.
Learn about how estate planning could make your loved ones lives easier in what could be the hardest moment of their lives. Read on below to learn how estate planning and having a will can avoid more heart ache!
A will is a legal document that specifies how you want your assets and affairs to be handled after your death. It can also name guardians for your minor children, appoint executors to carry out your wishes, and provide instructions for your funeral and burial. A will is one of the most important documents you can have, as it gives you control over your legacy and protects your loved ones from unnecessary stress and conflict.
However, a will is not enough to ensure a smooth and efficient transfer of your estate. You also need to plan ahead for other aspects of your estate, such as taxes, debts, beneficiaries, trusts, and superannuation. This is where estate planning comes in. Estate planning is the process of creating a comprehensive and coherent plan for your estate that minimises costs, delays, and disputes, and maximizes the benefits for your heirs.
Estate planning can help you and your family in many ways, such as:
Reducing or avoiding estate taxes and fees, which can eat up a significant portion of your estate and leave less for your beneficiaries.
Providing for your spouse, children, grandchildren, and other dependents, ensuring that they receive adequate support and protection according to your wishes.
Preserving your assets and preventing them from being wasted, mismanaged, or squandered by irresponsible or inexperienced heirs.
Creating trusts for specific purposes, such as education, charity, or special needs, allowing you to direct how and when your assets are distributed and used.
Planning for incapacity, which can happen at any time due to illness, injury, or old age. By appointing a power of attorney and an enduring guardian, you can authorize someone you trust to make decisions on your behalf regarding your finances, health, and personal care.
Expressing your values and preferences, such as your religious beliefs, ethical principles, and charitable causes, and ensuring that they are respected and honored by your executors and beneficiaries.
Estate planning is not a one-time event, but an ongoing process that requires regular review and update. Your circumstances and goals may change over time, as well as the laws and regulations that affect your estate. Therefore, you should consult an estate planning lawyer and a financial planner to help you create and maintain a suitable and effective plan for your estate.
To illustrate the importance of having a will and an estate plan, let me share with you a tragic story that happened to a friend’s neighbour recently. His name was John (changed all names for privacy reasons), and he was a successful businessman who owned several properties and businesses. He had a wife, Mary, and two children, Tom and Lisa. John did not have a will or an estate plan, thinking that he was too young and healthy to worry about such things.
One day, John was driving to work when he was involved in a fatal car accident. He died instantly, leaving behind his grieving family and a complicated estate. Without a will, John’s estate had to go through probate, which took months and cost thousands of dollars in fees and taxes. Mary had to deal with the legal and financial hassles, as well as the emotional trauma of losing her husband.
To make matters worse, John’s estate was divided according to the intestacy laws, which did not reflect his wishes or his family’s needs. Mary received half of John’s estate, while Tom and Lisa received the other half. However, since Tom and Lisa were minors, their share was held in trust until they turned 18. Mary had no access or control over their share, and had to apply to the court for permission to use any of it for their education or living expenses.
Furthermore, John’s businesses and properties were left without proper management or succession planning, resulting in losses and disputes. Some of John’s business partners and creditors tried to claim a portion of his estate, while some of his relatives and friends contested his estate, arguing that they deserved a share. Mary had to fight off these challenges, which added more stress and costs to the already difficult situation.
John’s death and the aftermath could have been avoided or mitigated if he had a will and an estate plan. He could have ensured that his estate was distributed according to his wishes, that his family was well taken care of, and that his legacy was preserved and protected. He could have saved his family from a lot of pain and trouble, and given them peace of mind and security in their greatest time of need.
Don’t make the same mistake as John. Make a will and an estate plan today, and enjoy the benefits of knowing that you and your family are prepared for the future. Contact us today to find out how we can help you with your estate planning needs.
If you need further help with the starting process, contact your local estate lawyer and ask around for prices. Creating a will, will be very different based on your circumstances, hence having your financial adviser in your corner would be wise so to make sure you are reducing costs where possible.
Until Next Time,
Take Back Control