Estate planning is important to all families. It is not only for the wealthy and it is not just for the retired either. Regrettably, people cannot effectively foresee on how long one person lives and maintain the lifestyle currently experience. On the other hand, people who were able to increase their wealth would find ways on how to preserve it. Good estate planning is vital most especially to families with modest assets. In their minds, they see it less difficult to come up with the money lost if ever that happens.
The sad truth is most people don’t plan for the future. People tend to put off estate planning thinking they don’t own enough assets or they are not old enough to consider thinking of the future. Without proper guidance, estate planning can be confusing. Most often, people think they have enough time to plan at a later time. When the time comes, whoever is left behind bears the consequence.
Some people would reason that if a person doesn’t have a plan, the state will do it for the person’s behalf. However, it may not work as expected. As such, letting the state decide is applicable if a person with disability has title of assets under his name and could not conduct business due to mental or physical incapacity. In this case, on a court appointee can sign on his behalf. The court and not any member of the family will now have the control how your assets will be put to use under a conservatorship or guardianship. The term used will depend on the state where the person is situated. On the thought that the person is relieved on the decision making, it can come to a point that it will be expensive and time consuming. It will be open to public and will bring difficulty in the event that the person can recover of his disability.
On the death of the person and without an intentional estate plan, the probate laws of the state will apply in handling his assets. As practiced in most states, if the person is married and have children, the spouse and children will eventually receive a share. But then, the spouse could only receive a fraction of the estate which practically may not be enough to live on. It may get unpleasant if the person has minor children and will enable the court to control their inheritance. Much more if both parents die and the court will have to appoint a guardian without knowing who were chosen to care for the children and what they were granted of.
An estate plan comes with instruction and one does not need to be intimidated. Planning your estate will help you organize your records and correct titles and beneficiary designations. Consequently, estate planning does not have to be expensive. One could always work on what he can afford. Estate plans could always develop and expand. A person’s need change and his financial conditions may improve. Thus, estate plans could always work depending on the situation.
It is important that a person will seek advice to a team of lawyers with expertise on estate and succession planning. This team have ample experience that will guide in making sound decision. They can provide legal resources which can be useful to address the issues involving estate planning. To add, what the clients have to say is an integral consideration if a firm is doing the job well.
When a family avails the services of estate planning, it is helping them safeguard their assets for the future. Planning for the future is essential. The issues covering estate planning can be emotional, complex and at times confusing because family relations involves different people with different personalities. They are interconnected must come up with an appropriate strategy to implement and how to make the most of the family’s wealth for the future generations.
Interestingly, succession planning consist of more than making a will. It can come up with lifetime gifts, family trusts and shared business ownership. Also, related tax issues can be also brought up like inheritance tax, capital gains tax, income tax and stamp duty land tax.
A Well established family office will have in its design the estate planning desired by the family even as circumstance change with in the family a well planning and constructed family office will be able to deal with and change to suit. The transfer of wealth from one generation to the next is performed in an orderly and tex efficient manner, Also the office will be able to successfully negotiate the accessibility of relief from inheritance tax on valuable assets. It also in a place to establish an investment company or trust intended to meet the individual needs of the family members.
Estate planning is advance planning. By making proper provision for the family, a person can have a sense of security and his family will be taken care of. Regardless of the family situation, it enables the person to retain the income and assets which took a lifetime to accumulate. It brings peace of mind to the person that he can provide to his family and that their needs will be properly addressed.