3 Reasons Why Estate Planning is Non-Negotiable

It’s easy to make the assumption that estate planning is only for those with properties, cars, and other valuable assets to their name. The truth, however, is that estate planning is valuable for everyone.

The distribution of your assets in the case of your death isn’t as simple as you would think. When someone passes away without putting their affairs in order, they no longer have a say in who gets what. This makes it difficult for those you leave behind to claim your assets.

Proper estate planning is important because it protects those you leave behind and allows you to have a say in who you want to receive your material possessions. It also keeps the recipients from losing a portion to taxes!

Cases such as Aretha Franklin’s illustrate why it’s so important to do estate planning. A year after she passed away without a valid will, her closest family members are still fighting for control of her estate—four sons included. You may not have an estate as sizeable as hers, but that doesn’t mean that you should neglect estate planning.

Here’s why estate planning is non-negotiable:

1 – You get to choose who gets what

Estate planning isn’t just for those with real estate properties simply because property isn’t the only thing that makes up your estate. Share portfolios, investments, and even your belongings are considered estate and can be distributed upon your death. Without a valid will in place, your assets will be required to go through probate. This can be a source of stress for your loved ones, not to mention that they may not get the entire estate. Proper estate planning ensures that your assets are distributed to the right people.

2 – Your family members won’t fight over your belongings

Every once in a while, we hear news about families fighting tooth and nail for the assets a loved one has left behind. If you don’t have a will, the courts will decide who gets what. If your family members aren’t happy with the verdict, they may fight it for more. Estate planning ensures that your wishes are respected and family feuds are avoided.

3 – Your loved ones are protected

There are so many ways that estate planning protects those you leave behind. For one, it helps you make plans for any children you may have in the case that you pass away. You can appoint a guardian that you trust and even specify what possessions you want them to inherit once they’ve reached a certain age. This is something left up to the court if you don’t have a valid will.

Even if you don’t have kids, you can still protect your loved ones by minimising the hassle they have to go through to claim your assets after your death. Probate is an exhausting process and inheritance taxes can be incredibly costly, leaving your loved ones with much less than intended. A professional estate planner can help you minimise the taxes your heirs will be subject to, reducing the financial and mental strain of the process.

Wrapping up

Estates valued any more than £325,000 are subject to Inheritance Tax (IHT) of 40% —a tremendous rate!

Don’t leave your loved ones with little more than half of what you intended them to. Estate planning isn’t only for those with their net worth in the millions.

If you want to choose who gets what, ensure that family members don’t fight, and protect your loved ones, get in touch with the professional Independent Financial Advisers here at Innes Reid.

We offer inheritance tax planning services that will help you minimise the hassle for those you will leave behind.

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