It’s easy to avoid thinking about what will happen when you pass away, however, it’s especially important to plan for this if you have a family.
Below are 5 reasons why you need to take a closer look at Estate Planning;
1- Reduce Tax!
You may be surprised about the potential tax bill charged to your Estate. With house values continuing to inflate, even the value of your home could see you paying more in inheritance tax than expected. This tax liability can reduce the benefits paid to your family. Effective estate planning can help to mitigate this so that your family receives the assets you had intended them to receive.
2- Provide Financial Support.
Arranging to leave money/assets to your family on your passing can provide them with financial support. It is also an effective way to build multi-generational wealth.
3- Ensure your assets are split fairly.
It may be that you wish to leave some of your assets to someone who may not necessarily receive any benefits from it under the usual rules of intestacy, e.g. stepchildren. Putting together a Will and/or establishing a Trust can help to ensure your assets are split as you wish them to be.
4- What happens if you can no longer make your own decisions?
Implementing a power of attorney helps to protect your financial interests even if you no longer have the capacity to make those decisions yourself.
5- Where do your pension or life insurance benefits go?
Have you nominated a beneficiary to receive these benefits? Are you aware of all of the pension/insurance benefits available, from old or current workplaces too? Estate Planning includes obtaining a better picture of what you have before deciding where these will go.
Speaking with a financial adviser can help you to begin reviewing your situation and identify any future liabilities before implementing a plan to tackle these.