What is Estate Planning and Why it is Important?

May 17, 2023    Estate Planning Lawyers Perth
What is Estate Planning and Why it is Important?

An estate is a valuable asset in everyone’s life. It is a reflection of your lifelong hard work. No matter how expensive it is, it might be the most precious for you. You can take various steps to protect it. Have you ever wondered what happens to it after you?

You should wonder about it. You must know what estate planning is and why it is important. It can help determine the way of preserving your property after your death. You can choose whom you want to hand over the responsibility of your estate.

The blog has synthesized all the necessary details about the estate you need to know. Reading it, you will understand the importance of estate planning.

What Is Estate Planning?

A broad term used to explain the administration process of an individual’s assets and liabilities before and after they die is known as estate planning. It includes reviewing accounts, writing a will, and overseeing assets. You can also use it to create joint accounts, prepare other legal documents, and appoint an executor and others.

In order to ensure a secure distribution, the estate planning lawyer can help you. Under their guidance, you will be able to build a comprehensive plan. They would also teach you the practical way of implementing them.

What Are the Factors Influencing Estate Planning?

There are a few factors that might influence the planning of your estate. They can increase or decrease the value of your planning. Before you start planning, you must be aware of them.

  • Will
  • Trust
  • Power of a solicitor
  • Beneficiary designation
  • Healthcare directive
  • Regular Review

You need to follow the elements to set up a successful estate plan. Most importantly, reviewing the plan is very crucial. With the world’s changing needs, you may need to alter a few things. Making alterations to your estate plan can be easier with the support of a solicitor.

What Is the Importance of Estate Planning?

Planning the estate can be favourable for you as well as your loved ones. It would save your property from falling into the wrong hands. Instead, you can choose whom you want to hand it over to when you are gone. Here are the top four reasons depicting why estate planning is so important.

To Protect Your Beneficiaries

Planning it beforehand would help you protect your beneficiaries. You can decide which heir is worthy of making the best use of your precious asset. Otherwise, the property division process would take a huge time after you.

The court can ask for multiple hearings, which would be time-consuming for your heirs. The decision-making will be processed based on evidence and the judge’s will. It can result in giving responsibility to a not-so-worthy descendant.

It is why you need to plan the estate beforehand to establish which descendant can get which part of your property. You also can give the onus of all your assets to keep them safe and secure.

To Protect Young Children

In case you are suffering from a deadly disease, you must be very worried about your children. Estate planning allows you to mention the name of their future guardian in the will. It would ensure your children get the proper raise. It would also release stress for you. Otherwise, the court can give the right to anyone meeting the requirements set by them.

To spare Your Heir from Taxation

You can secure your loved ones from hefty bite taxes. Creating an estate plan would transfer assets to your heirs with the minimum possible tax rate. Thus they can save their money from paying high land revenues. Moreover, it would be beneficial for you to know Australia has no estate or inheritance taxes.

To Eliminate Family Dispute

You may hear of an inheritance dispute. The main reason behind it is the unresolved will. It can raise complications among siblings. The disputes can often take a vulnerable turn. But you can protect your loved ones from going through such circumstances.

Developing an estate plan is the one and only solution to your problem. Separating individual assets for the heirs can prevent them from quarrelling in the future. It would make each one of them happy and eliminate family messes.

Professional lawyers can help you build an accurate estate plan for your heirs. Making it understandable by all, the lawyers can reduce more than half of your load. Now that you know its importance, you should start determining whom to hand over your valuable assets.

What Are the Issues Related to Estate Planning?

Estate planning is very much important for your loved ones. But there are so many barriers in the process. You need to consider all of them in order to create a practical estate plan efficiently.

Tax Planning

Tax systems do not always line up with each other, which makes it a big issue. If you fail to distribute the taxes, it can raise difficulty for your heirs.

Asset Protection

You need to know the asset protection advantages to avoid restricting your heirs from enjoying it. Without proper protection of the assets, eliminating future conflicts can get complicated.

Probate

Giving your estate planning a legal touch is never an easy process. Despite the helpful personnel, the fees and privacy issues can be challenging for you. Moreover, it can make you wait for a long.

Family Disharmony

Choosing a reliable heir for your asset takes time and effort. But more than that, giving the crucial parts of the estate to the responsible one can raise family disharmony. It can badly impact their relationship.

Error in Will

If you make any error in the will, it can adversely impact the inheritance of your loved ones. Thus it would help if you thought calmly before preparing a will for your estate.

Joint Accounts

In case you have an account joint with one of your heirs, the assets go in the name of the survivor. It can be a disaster for you to leave your valuable estate in the hands of one heir. Thus, you cannot forget to make a consideration for that.

Procrastination

It is one of the major issues in estate planning. Once a death or disability occurs that leaves the estate unplanned, it can be costlier for the heirs. Often it is not possible to divide it at all.

These are the related issues you may encounter while preparing for estate planning. But the support of a lawyer can reduce the chances of it. They know the possible challenges encountered by the planners.

The lawyers can provide you with the best solutions to protect your assets even after your death. You can extract all the possible profits from estate planning by avoiding the mentioned restrictions.

Bottom Line

In final words, a lawyer can introduce you to the asset protection advantages. You can know the factors that can influence your estate planning. Also, they would oversee your planning to make you aware of the changes that you need to make.

Estate planning is vital to secure your valuable assets. It hands over your valuable property to your most trusted heir. The estate planning lawyers Perth determines all the associated challenges with it. As a result, you can develop successful estate planning.

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