Estate planning is a safe and legal method of transferring your assets to a nominee or nominees after you die or become effectively powerless.
This practice is followed by people all around the world, and it is one of the best ways to ensure the lives of your loved ones after your death.
Inheritance of assets through estate planning is frequently followed by inheritance tax. However, you do not need to be concerned because, in Singapore, such taxes are not due for anyone who died on or after February 15, 2008.
What happens after you pass away?
After a person dies, his or her assets are passed down to the family. Assume a person dies without a will, the question arises that what will happen to their possessions.
In that instance, it will lead to family feuds and conflict over who would inherit the assets. To avoid such mishaps, we should create an estate plan and safeguard our loved ones' future.
The Importance of Estate Planning
We can never foresee what will happen to our loved ones when we die, so it is best to plan ahead of time and ensure that everything is in order for the future.
There may be a misconception that estate planning is primarily for the wealthy, but this is not the case. Estate planning is important for everyone.
Through estate planning, you have the ability to:
Ensure your preferred beneficiary
It means that you will be able to provide for your loved ones in the event of your death. Intestacy statutes frequently include a default will, which is incorporated after your death. And, in many cases, such allocation does not satisfy the nominees as necessary, resulting in disagreement. Therefore, it is necessary to make your own will so that it overrides the default one.
Both of these wills have their pros and cons. Thus, it is an excellent advantage to have an attorney who can review your will and estate distribution.
Protect your loved ones and children
This is an unpredictable time, and we all want the best for our loved ones. When you depart, an estate plan ensures that all of your assets are accounted for and your debts are paid in full.
A well-planned will provides your loved ones with greater protection than if the court decides for them. You certainly do not want to burden your family with your debt. Not only young ones, but even adults can be beneficiaries. If you wish to give aid to people who are bad at financial matters, a secure estate plan is useful as it can help through specific instructions that you make.
When drafting estate arrangements, you are ensuring your future security. It helps to ensure that your beneficiaries are protected from any future responsibilities, and it also continues to support their livelihood, academic needs, life-sustenance, and so on.