5 Non-Tax Reasons for Making Your Estate Plan
One of the biggest myths about making a Will and estate planning is that it is something only wealthy people need. Afterall, the only reason for having an estate plan is to minimise inheritance tax, right? Wrong!
The truth is, inheritance tax is only a piece of the estate planning puzzle and without the appropriate planning you and your family are exposed to a variety of risks. A comprehensive estate plan will also include a Will, Lasting Powers of Attorney, Trusts and Business Succession Planning all tailored to your personal circumstances to ensure that your family are protected against all risks.
Here are just a few non-tax reasons to make your estate plan:
HAVE THE APPROPRIATE PEOPLE IN CHARGE
An estate plan allows you to choose people who can be given authority to make financial and medical decisions on your behalf if you become ill or lose mental capacity. It also lets you name your Executor, your Trustees and the Guardian of your minor children – all the people who will be in charge of making sure your wishes are carried out after your death. Without an estate plan, these people will be chosen by the courts and they could be people that you would not have selected, if you had the opportunity.
DISTRIBUTE YOUR WEALTH YOUR WAY
An estate plan will ensure that the hard-earned wealth you have accumulated goes to the people you choose, in the proportions you choose, and at the times you choose. If you do not have an up to date estate plan, your wealth will be distributed according to the laws of intestacy and it may end up going to the wrong people. No allowances are made for family dynamics, personal preferences or special circumstances.
PROTECT YOUR LOVED ONES’ INHERITANCES
Your children’s and grandchildren’s inheritances face all kinds of threats. Without a solid plan, the wealth you pass on to your family members can be eaten away by divorce, creditors, inheritance tax or their financial inexperience. A Professional Estate Planner can build provisions into your plan to protect your family’s inheritance from these threats and more.
HELP YOUR BUSINESS THRIVE FOR MANY GENERATIONS
For most business owners the chances are that a lot of your wealth is tied up in your business and therefore it is critical that your estate plan includes a robust business succession plan. This increases the odds that your business will make a smooth transition from the first generation of ownership to the second – and beyond. Business owners failing to have an estate plan run the risk of undermining a lifetime of hard work, jeopardizing the livelihood of your business associates and putting your loved ones at financial risk.
PREVENT FAMILY CONFLICT AND REDUCE STRESS
The death of a loved one is a stressful time for the surviving family and often there are conflicts and disputes amongst siblings over who gets what. When you put an estate plan in place, you provide your loved ones with a roadmap for navigating this difficult period with as little tension as possible.
There is nothing that can really prepare you for facing the reality of dying but done properly, estate planning can make life easier for your family when you are gone. Estate planning gives us peace of mind, simplifies things for the people we love most, and it means our wealth will be protected to benefit our children and future generations to come.
If you do not have an estate plan or if you have not updated your existing plan within the last 3 years, then now is the time to meet with a Professional Estate Planner who can help you put a plan in place that meets each of your goals and protects you and your loved ones – whether or not inheritance tax is a concern!
It is essential you put a Will and Estate Plan in place as soon as possible to ensure your estate is distributed according to your wishes after you die. As a leading Will Writing & Estate Planning specialist based in Romford, Essex, Strathmore Wills & Estate Planning are dedicated to protecting your family and wealth. To find out more about how we can help you call us on 01708 923 3030 or email firstname.lastname@example.org. Back to Blog Sign Up To Our Newsletter