Estate Planning

by Cameron McKayWhen someone very close to you passes away or loses mental capacity it can be the most devastating experience. Many people find themselves very emotional and unaware of how to deal with whatever comes next. Whilst nobody likes to think about death, proper and careful estate planning can not only reduce the stress for your next of kin, but also avoid family disputes, assets put in the wrong hands and excess money paid in Inheritance or other taxes.I have listed below what I believe to be the six most important reasons to be proactive with your estate planning.

Control your estate. The majority of people's first priority when creating a will or trust is ensuring that their assets are dispersed according to their preferences.

Avoid disputes. Your desires will be made plain to your family and other beneficiaries, reducing the chance of disagreements over who should receive what.

Ensure your children are looked after. If you have young children, you can name the guardian yourself rather than leaving it up to the state to make the choice.

Make your funeral requests clear. A will is also where you can set out the kind of funeral you’d like, from whether you’d prefer to be buried or cremated to your choice of music.

Avoid intestacy rules. In some cases, intestacy laws may result in your loved ones receiving nothing at all or incurring a large inheritance tax payment that you might have avoided by creating a will. A simple will is better than no will.

Reduce Inheritance Tax. Anything in your estate above the Nil Rate and Residential Nil Rate Band allowances is liable for Inheritance Tax. Making arrangements in your will or via a tailored trust solution can mitigate inheritance tax.There are many other aspects that you need to contemplate before you can give directions or instructions about giving away your assets.What do you have and what is it worth? What are your goals? What do you want to achieve and what are the values you hold dear? How much do you need for your family’s security? How do you stand financially in the event of a death, needing care, divorce, or re-marriage? Does the family’s culture and religion impact your decisions? How prepared are you to hold family discussions about inheritance and learn from younger family members about their hopes and dreams? How fair do you want to be in dividing up your estate and are you even concerned about how much tax your beneficiaries will pay?There are many questions, but only you can provide the answers, possibly with some assistance and support. Provided you have made it clear what your requirements are and what is important to you, they should all work in harmony for your benefit.At Wealth Matters, we want to help you look forward to the future with confidence – and know that whatever happens, your loved ones will be well taken care of. We can guide you through the complex world of Inheritance Tax, Wills, and Trust Planning, making it all as simple and straightforward as possible.