Estate planning explained
What is estate planning?
In its most simple form, estate planning is about peace of mind. Estate planning is all about putting the right structures in place to make sure your assets are distributed the way you want and in an effective way.
Why is an estate plan important?
An estate plan involves much more than a simple Will. Although it's important to have a valid Will, an estate plan covers many other aspects relating to the transfer of your wealth after you pass away. Family trusts, powers of attorney and the tax implications for beneficiaries can all be managed with an estate plan.
Also, with blended families becoming more common in recent times, estate planning has become more important for those with complex family structures.
The benefits of having an estate plan
By having an estate plan in place, you will help your beneficiaries avoid difficulties and disagreements because you can:
- stipulate the amount of ownership and control each of your beneficiaries has over your assets
- reduce the tax payable on the income and capital gains earned on assets, and
- ensure your assets are protected if the beneficiary is involved in any legal difficulties such as divorce or bankruptcy.
To find out more about developing an estate plan make an appointment with a Bridges financial planner.