Will and estate planning isn’t something that many people tend to prioritise, let alone think about as part of their plans for the future. In fact, the statistics on people who have a will in place are alarmingly low, despite the common knowledge that the death or incapacity of a breadwinner or perhaps two parents can leave all kinds of issues for a family in terms of medical decisions, wealth distribution, and guardianship among many others. This is where will planning in Sussex should come into play. Estate planning will shield you from many of the unfortunate outcomes of untoward death or incapacity. Here are some useful tips to keep in mind when going through estate and tax planning:
- Arrange a will – A will is one of the best tools to make sure that your assets will be distributed amongst your family members and beneficiaries according to your wishes.
- Treat assets individually – Never assume that your beneficiaries will know (and be able to) work division out amongst themselves. This will help avoid a great deal of misunderstanding in the family when the time comes.
- Multiple beneficiaries give you spray power – Trusts can gain tax flexibility when you allow your trustee to distribute the net income among several beneficiaries.
- Surviving spouses can secure inheritance tax exemption – When leaving a sizable estate to your spouse, tax exemptions can be doubled.
- Consider life insurance for your no-income spouse.
- Update beneficiary designations – Constantly update beneficiary designations, particularly after major life events, such as a death in the family, birth of a child, or divorce.
- Trust a qualified executor – Be sure to appoint a responsible qualified executor to administer your estate plan.
A carefully conceived tax and estate plan is one of the greatest gifts you can give to yourself and your family. It offers peace of mind as you go through life knowing that no matter what happens, your loved ones and chosen beneficiaries will receive the best of your hard-earned assets.
