Wills & Estate Planning: 5 Advantages To Secure The Future
Planning for your family’s future is a critical task. However, when it comes to future planning, we all start to fumble.
Why?
Well, both property distribution and selecting the future guardian are distressing and come with loads of thoughts. It’s hard to separate our loved ones!
However, the process is not as difficult as you think with wills and estates lawyers Melbourne. They are smart enough to deal with your estate while managing the future concerns of your family the way you wish.
In fact, proper estate planning can save your family’s future. Despite the benefits, we tend to delay this process just because we find it hard to accept the truth of mortality.
No one wants to separate while in a good state of mind, but if you do not plan a will, it can throw your family into a critical situation after you pass away. It’s hard, but think of it right now, or you will miss the opportunity to provide the best possible future for your family members.
What Are Wills And Estate Planning?
With Tonkin Law, wills and estate planning involve making decisions about how your assets will be distributed after your passing and ensuring that your loved ones are taken care of.
For instance, property, money, and personal belongings are crucial assets you want to manage even after you pass away. However, your estate includes everything that you own.
- Home
- Bank accounts
- Car
- Furniture
- Real estate
- Life insurance
Estate planning, on the other hand, is a broader process that includes creating a will as well as other legal documents, such as trusts and powers of attorney. Estate planning is aimed at protecting your assets and ensuring that your wishes are carried out.
Benefits Of Having An Estate Planning
Estate planning is an essential process that everyone should consider!
It helps to make decisions about how your assets will be distributed after your passing and ensure that your loved ones are taken care of.
An estate plan has many benefits, including providing more to your family and reducing your estate taxes. Well, estate planning is not limited to these, but other advantages exist.
Here, we will explore all the benefits in more detail and explain why estate planning is a crucial step in securing your family’s future.
Provide More To Your Family
If you don’t have an estate plan, your family ends up with less. When you pass away, the court may decide the distribution of your assets, which can lead to long and expensive legal battles. This can also cause emotional stress and strain on your family. Your family may also end up in limbo, not knowing what to do with your assets and how to manage them.
However, it’s not uncommon for families to face financial constraints, but the modern economy is more vulnerable than you think. Protecting assets with proper estate planning can save your family from these issues.
By creating an estate plan, you can ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you pass away. This can give you peace of mind, knowing that your family will be in good hands even when you are not around.
Reduce Your Estate Taxes
If you have significant assets, estate taxes can be a considerable concern.
Well, there are many ways to achieve this objective. However, one way to avoid estate tax is a trust! It transfers everything to the charity of your choice.
This type of trust is called a Charitable Remainder Trust (CRT)!
A CRT allows you to provide for your loved ones while also supporting a charity of your choice. By setting up a CRT, you can transfer assets to the trust, which then pays out a percentage of the assets to your beneficiaries for a set number of years.
After this period, the remaining assets are donated to a charity of your choice. By doing so, you can reduce estate taxes while supporting a cause close to your heart.
Protect Your Children
Wills and estate planning in Australia is more than just protecting your assets. You do not want to think about it or die young. But the truth is that we are mortals, and we do not plan our deaths.
So, why not protect your child in advance?
When you are not there, who will take care of your child?
However, with a will, you can maintain the name of the guardian who will care for your child. This will help your child stay safe while their upbringing is protected.
Avoid Probate
If you do not have a living trust, it can lead to probate after you pass away. Probate is a legal process where the state law or probate court will take control of your estate and maintain distribution factors. This means that the court will decide how your assets will be distributed, which can lead to long and expensive legal battles. In addition, this process can often take months, if not years, to settle, causing further stress and burden on your loved ones.
Probate can also hand over your family’s privacy to others, as it is a public process that anyone can access. This can be especially damaging for families who want to keep their affairs private and confidential.
Furthermore, the probate process can take a lot of money to settle the distribution matter. The fees for attorneys, executors, and court costs can quickly add up, reducing the value of your estate. By having a living trust with Tonkin Law, you can avoid probate altogether and ensure that your assets are distributed according to your wishes.
Your Family Can Access Assets Easily
When you pass away without a will, the process of distributing your assets can take longer than usual. It may take up to nine months!
During this time, your loved ones may face financial hardship and struggle. They can face expenses such as medical bills, your funeral, and normal living expenses.
Creating an estate plan can be a daunting task, but the benefits are significant. By working with an experienced lawyer, you can create a plan that meets your unique needs and provides peace of mind for you and your family. Don’t wait until it’s too late!
Start planning for the future today!
Additionally, your wishes will be protected with proper estate planning while you can plan for all incapabilities in the future.
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