A person’s estate comprises everything he or she owns. Therefore, regardless of how much or how little you own, you too have an estate. Sadly, after you die, you will not be able to benefit from any of your possessions. That is where estate planning comes into play. Estate planning involves creating an official plan for how your estate will be divided and among whom after you have passed. Estate planning may also involve arranging living trusts, granting powers of attorney and other issues.
Here’s why estate planning is so important:
1. Estate planning prevents your estate from going to unintended beneficiaries
If you do not have a solid plan in place for who will receive your belongings, you will have no control over this once you die. The decision will then lie with the courts. The court process can take years to be resolved and at the end of the day, the decisions may go against all your last wishes. Furthermore, family disputes often occur when these types of cases make their way to court. To stop this from happening clearly outline how your property should be divided in your estate plan.
2. Estate planning protects your children
No one wants to die and leave young children behind. Still, you must prepare for such an unfortunate event. In your estate plan, you can state how you want your children to be cared for after your passing. You should also name a guardian for your children should both parents die before they become adults. If this is not done, the courts will step in to decide what happens to them. Additionally, in your planning, you should declare who you want to handle your children’s inheritance until they are old enough to look after their own finances. For this role, you may name someone other than the guardian you have chosen for them.
3. Proper estate planning reduces the tax burden
After your death, if you leave certain types of assets for your loved ones, they may be required to pay taxes when these assets have been transferred. If done properly, estate planning can minimize the amount of tax your beneficiaries will owe.
Estate planning provides for your care if mentally incapacitated
Estate planning also involved preparing for the event that you become mentally incapacitated. Should you no longer have the ability to make important decisions, your estate plan will outline who will be responsible for your care, manage your finances, care for your children and handle other responsibilities.
Do you need an estate planning lawyer in Surrey?
The above mentioned points are only some of the many things involved in estate planning. If you need an estate planning lawyer in Surrey to further explain the importance of estate planning and help put your affairs in order, contact us at Nirwan Law Corporation. Unlike many other law firms, you will meet with our experienced estate planning lawyer on your very first visit at no charge. At our firm, we enjoy a reputation among our clients and the legal community for providing the highest quality representation. Our team will provide guidance on designating beneficiaries, arranging living trusts, granting powers of attorney, minimizing the impact of taxes on your estate and other legal matters. You will find as well that our legal fees are fair and affordable. So, what are you waiting for? Give us a call today.