Retirement is a state of mind. There is no set time when one must desirably retire. Only when you feel like you do; that being said, while you are still in a deliberative state, you should strongly consider estate planning. Of course, retirement can wait, but you must always be one step ahead when it comes to estate planning – because life is unpredictable and financial matters can be a murky affair.
The unexpected demise of an earning family member is never a straightforward affair. And, when the wealthy die, they often leave behind a nasty web of family disputes, questions on legacy, and too much paperwork for a range of professionals. Thus, estate planning should be paramount to all the High Net Worth Individuals (HNWIs). Today we will talk about the importance of estate planning, so stay put.
Where there is a will, there is a way
Many well-known persons, especially the wealthier ones, have died intestate for as long as we can remember. Intestate means without a will. You must have heard of the complications arising from a lack of will in any of your social circles. Imagine the problems faced by these wealthier individuals and their families. People such as Bob Marley, Pablo Picasso, and Michael Jackson died without a will, and the settlement of their estates faced many controversies.
You must write a will as soon as you can. A will is a comprehensive document that determines how and to whom the testator wants to distribute assets and investments. The will indicates the will of the testator and is given finality. In the absence of a will, succession disputes can become complicated and unnerving; these disputes can be dragged on for years in courts.
Estate Planning protects the rights of the heirs and beneficiaries
Unfortunately, no one can take their estate with them to the grave. However, legacies remain, and someone will have to take care of them. Moreover, estate planning takes into account the future of the beneficiaries. Whether it is your natural heirs or a friend who is a beneficiary, you must settle all the rights there are to be bequeathed. Leave no room for disputes so your beneficiaries and heirs won’t face problems. In fact, you may want to discuss with them to understand their expectations and include them if and when possible.
Just protect your business and family from scandals
So many wealthy persons died without a will and had their families face really embarrassing scandals. Anyone would come up and claim to be an heir, which damages the reputation and goodwill of the business and the family involved. Moreover, intestate death gives fodder to intra-family quarrels.
Family messes can become grossly unpleasant in matters of succession. These messes can be sensitive to the growth of the business and public image. Therefore, estate planning will ensure that you have considered everything and have decisively inked the final call. Once you have determined what needs to be done and the law recognizes the same, no one can object to it, even if they want to.
It helps a lot in saving taxes
You may or may not know this, but estate planning can actually provide the beneficiaries with tax benefits. Many countries extend tax benefits to the beneficiaries through reduced tax burdens. Several countries in the Caribbean Region do not have any inheritance tax system. However, this can only happen through meticulous estate planning. Consider how much and what should be given to respective beneficiaries so that tax burdens can be accordingly distributed and do not fall disproportionately.
It helps you protect your business
The complications arising from poor or no estate planning impact the health of your business. You will leave behind your empire to be taken care of. Still, if the caretakers are busy quarreling, the empire would be in shambles. Succession disputes have destroyed businesses; you wouldn’t want that to happen to your hard work. So, do not dilly-dally and prepare for any eventuality. A smooth succession boosts the growth of the business.
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