Estate Planning

Each one of us owns an estate, be it real estate or your possessions or your life's savings and investment. You need to plan right from the beginning as to who will be entitled to the possession of your estate right after your death. To have control over the distribution rights of your estate / assets after your death, you need to plan the proportion of your estate / assets that different persons or organizations will be receiving. This process is known as Estate Planning and it is usually done through a Will.

What does Estate Planning include?

A detailed guide on management of your financial affairs before your death in case of your full or partial disability. Arrangements for disability income insurance to help you pay for your medical care in case of an extended illness or injury along with life insurance. In case of your retirement, death, incapacity, or disability, it helps you to formulate the plan for transferring your estate / assets to your loved ones. Helps you minimize the court fees, taxes, and extra-legal fees with proper planning. You can update beneficiary designations or fund your assets into a living trust so that there is an alignment of an estate plan with your assets. Your family members and close ones can enjoy protection from creditors.

Why do you need Estate Planning?

Estate planning is a must have for everyone irrespective of the quantum of assets you own. You might think that if you have negligible assets you don't need to plan it. But, would you not like to decide for what purpose your hard-earned money would be used after you die?.

Estate Planning is a gradual, ongoing process and is not a matter of a day or two. Also, you cannot stick to a particular plan throughout your life. You have to constantly review and update it so that it fits your current financial and family circumstances. None of us can predict how long we live, so the earlier you start planning the better it is. Even if you are not so wealthy in terms of assets, you need to have a plan because the impact of loss in time and funds could be greater for you.

Don't let the state decide your fate:

Do you procrastinate to get involved in estate planning because you feel there is still plenty of time for it or your assets are not valuable enough? Put that thought aside! Even if it is a process that is not so simple, it is worth the effort to secure the future of your family.

Once you die and if your estate is not planned, the process of recovering your property will be very lengthy and expensive and will drain the financial resources of your family for no reason. If you die without designating a beneficiary or any other governing contract, the state's intestacy laws will take over your property.

Your property will be distributed through a court-supervised probate proceeding and you or your family will have no control over your estate at all. Sounds like a bad plan! So start estate planning even before your retirement phase.

What is the process of will or estate planning?

The process of estate planning starts with a will or other governing contract. You get to decide the asset distribution ratio which after your death will be done by the State's probate court. The process varies between different states. Sometimes it takes around two months and at times even over two years. It depends on a lot of factors.

Organize Your Records & Designating the Beneficiary

You need to ensure that after your death, your family members can easily locate your insurance policies, financial records, and Title deeds of the properties you own. Estate planning will simplify the entire process. Your family will be easily able to locate and organize your information and documents as well as trace and correct any vital error. Estate or will planning ensures that your beneficiary designations are not out-of-date or invalid.

Conclusion

Estate planning is not as expensive as you think. The best time to plan Your estate is now! Secure your and your family's financial interests and peace of mind.