Planning your will is not just about telling your loved ones which of them get what. It also involves a lot of financial and asset considerations and assessments. If you are on the estate planning phase and want to know how to go through it effectively, here are some reminders to keep in mind.
#1: Anything Not Under Your Name Can Be Excluded in Your Estate Plan.
Diverse investments are a smart decision when you are financially capable. It can strengthen your portfolio and give you a higher yield of return than simply investing in one thing. However, when creating a will, you do not have to mention these assets directly. An attachment that talks about your plan for these other investments can suffice.
Do not attempt to include these assets (such as companies and trusts) into your list as they can cause confusion later.
#2: A Joint Tenancy Asset Can Be Included in Your Will.
If you have a joint tenancy, that means two or more people own a property together. Since you are an owner, you can still include said property in your will. When the time comes that you pass, your share of the ownership and handling can be transferred to your beneficiaries.
#3: Be Mindful of the Existing Inheritance Rules.
If you plan to provide a monetary inheritance to your loved ones, you need to be mindful of rules that can affect the situation. For example, in the US, when your chosen beneficiary also receives government benefits given their situation.
Suppose one of your beneficiaries has a disability and receives government benefits. They may lose government support if you push through your inheritance plan. To address this, you can disguise that inheritance through other means to avoid entering that.
The Benefits of Estate Planning
While the process can be complex sometimes, estate planning also has its benefits, such as:
- You can make sure your wealth goes to the rightful and intended beneficiaries.
- Your loved ones can get guaranteed financial support for their future.
- You can minimise or avoid death taxes.
- Should you and your partner get divorced in the future or your small business experience bankruptcy, your beneficiaries’ inheritance can remain protected.
- You can also protect your wealth from your beneficiaries’ vulnerabilities such as addictions, age, mental health issues, and others by defining your guidelines clearly on your estate plan.
As soon as you have an idea of your financial situation, you can start preparing for your future. Have a list of your assets and liabilities and their costs, and start writing your will.
Conclusion
A well-planned out estate plan can provide anyone peace of mind. Doing that can take burdens off your shoulder and make it easier for you to distribute your assets should the time come. However, it is a complex process that requires help. While a lawyer can help create your will draft, a financial planner or advisor can guide you on how you can break down your assets and other properties accordingly.
Should you need estate planning on the Gold Coast, we can provide that service. At New Wave Advice, we can help you leave a clear and easy-to-understand legacy. We also work with lawyers to ensure you have everything you need. Contact us today.
