Thinking about death or a calamity that renders you incapacitated isn’t the most joyful thought. However, any pragmatic human might say that death is probably the only sure thing that all of us will face. Thinking and planning for it is hence, just a pragmatic thing we must all do!
For the sceptics, we have highlighted a few more reasons to have a Legacy or Estate Plan in place:
It Forestalls Unintended Beneficiaries
One of the primary tasks of asset planning is to assign who will receive an individual’s assets, which may include a property, assets, or a stock portfolio. Without a legitimate inheritance plan set up, an individual will not have authority over who gets those benefits. One of the principle parts of estate planning is assigning who gets what. Without a will, an estate will go under intestacy guidelines.
It Plans for the Unforeseen
Legacy Planning encourages you to get ready for any unexpected occasions. This may be through the formation of an In Case of Emergency (ICE) pack which might incorporate your will, insurance, bank balances and imperative contact subtleties., which a family can go to if an unexpected calamity were to occur. This way your friends and family can approach all that they need thus that the desires can be done in the best possible way.
It Saves Your Recipients Huge Taxation Liabilities
Legacy Planning empowers your recipients to get incentives from any assets or wealth that is passed on. You’ll need to transfer all the wealth to ensure minimal tax liabilities. Some portions of the estate may contain what may be considered as ‘hidden’ assets, so this must be handled with proper due diligence. This may include annuities, life coverage or a few trusts.
It Takes Care of Family
The Legacy Plan will empower an individual to pick who controls the funds and assets should you be not able to do so. Individual’s should make plans for a child with medical issues or set up a trust for one who may need financial help but are not able to manage it due to age or other reasons.
Legacy and Estate Planning and used interchangeably and essentially mean the same thing. Done properly, it ensures that your recipients are given their due and taken care of when you are not around. You can get your legacy plan started easily with Clocr!