Estate planning is defined as the process of organizing one’s financial affairs (their estate) in anticipation of their death or incapacitation.
One’s estate is made up of their total assets (both movable and immovable) less their liabilities.
It is very important to invest in estate planning for the below listed reasons:
- It curtails the negative effects of estate administration of such outlined above.
- It significantly cuts down or reduces the costs and taxes that one incurs.
- It additionally significantly reduces the conflict within the family or legal entity as there is a clearly set succession plan.
- Distribution of your assets is done in accordance with your wishes.
- You can choose the administrator of your estate.
- You can appoint a guardian for your minor children.
- Ensures that your children’s needs will be met even after your demise as one may put in place certain safeguards.
Many will ask the question, What are some of the estate planning tools available to me?
One may invest in
- Drawing up a will (last will and testament) and
- Setting up a family trust.
A last will and testament may be defined as a legal document that specifies how one’s assets are to be distributed in the event of their demise.
A family trust is a means of estate planning that ensures that one’s affairs are in order. The setting up of a Family Trust is a good way to safeguard one’s property interests, especially immovable property. Of importance to note is that Family trusts can hold both movable and immovable property.
This is for general information purposes only
