We all know about the importance of a ‘Will’ and its role once a person passed away. Considering how your assets would be distributed among the loved ones is crucial. You have to do this with proper planning and preparation. This process of preparing your assets for transformation after your death is called Estate Planning. It ensures that your finances are distributed among your loved ones. This way you can make certain that after your death your wishes are met.
The role of expert solicitors is critical in estate planning and preparation. A skilled lawyer can guide you well and helps you save money that you may be paying as taxes. In case you are looking for such a lawyer, contact the nearest Solicitors in Stockport.
How Estate Planning Helps
Estate planning helps you structure a clear plan according to your wishes. This way you can put together your wishes and nominate successors. You can state whom you would like to manage the property or financial issues after your demise. Plus, estate planning will help the successors to get easy probate.
Your loved ones will be able to follow your guidelines after your death. You can also ensure that they don’t have to pay an inheritance tax while they apply for the assets.
5 Crucial Points for Estate Planning
Here are the 5 vital points that you must keep in mind during estate planning.
1. Making Gifts to Beneficiaries
If you want to avoid taxes, making gifts is one of the best possible ways. Taxes do not apply to certain types of gifts and you can transfer your assets freely. For example, gifts to your civil partners or spouses and charities or universities. Also, there is no tax on gifts that you give to a person 7 years prior to your death.
2. Trust Funds
Setting a trust fund is a better idea to secure your assets for children. This way you can ring-fence your property for young family members who can’t own an asset yet. Thus, your children can get the assets when they reach a certain age and you can avoid taxes. It is an easy way to allocate assets beforehand and in installments as well.
3. How Much You Should Pass on
While distributing your assets, think about how much you should pass on. Taking care of your own lifestyle is an important part of estate planning. Consider the factors that may affect your ‘will’ in case you need long-term care. It is wise to keep enough for yourself if you need any unanticipated healthcare. Reserve some capital for your extended life and needs as well.
4. Don’t Forget Necessary Spending
Necessary spending is another factor that you should never forget during estate planning. Consider spending like maintenance, mortgage payment, home improvements, etc. Keep in mind the expenses that you have to deal with in the near future, for example, buying a new car.
5. Let Your Family Know
The process of estate planning and setting a Will is entirely up to you. But it will be helpful for your loved ones to locate the assets if they know where the files are. Inform them about single or multiple wills and other legal documents. For example, they can easily allocate shares after your demise if you have kept them informed. Your family can easily track down and accesses the assets that you have left.