With estate planning, your assets will be distributed according to how and to whom you want them to with minimum legal complications and tax incidence. Estate planning is for everyone, not just the rich or the old.
Anyone who has assets can do it. There’s no time like the present to plan your estate. Planning your estate during an illness is not ideal since your decisions aren’t always wise. Death or illnesses do not make their time known, so you should do this while you are still capable.
The first thing to do is to know what your material possessions are and their values. This would usually include house and land, vehicles, cash, savings, jewelry, furniture, art, rights, and claims. Mind you, the list is not exhaustive and your debts and obligations to others are also a part of your estate.
Next, list the details of your beneficiaries. You should also have a guardian appointed for your minor beneficiaries. You should also make sure to identify the executor of the estate. It would be easy if you line up pre and post nuptial agreements, divorce decrees, previous wills, deeds of real estate property, and latest tax returns before you consult a professional estate planner.
Even if you small estates, it’s better to get a professional estate planner so there would be less tax incidence.
Remember, estate planning is not a one-time affair. There are certain instances when you’d have to review your plan, like if you change your marital status, if there is a birth of a child, death of a beneficiary, or changes in the law.
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