The People in Your Life Matter
It’s essential to work out who your beneficiaries will be and see what options are available for them.
A beneficiary is someone who inherits your assets from you. It would be best if you decided who should get your assets.
Look at the following when you do your estate planning:
- Reduce taxes where you can.
- Make sure your spouse or partner or beneficiaries are looked after.
- Donate to your favourite charity.
- Make sure your affairs are well looked after in the event of you becoming ill.
Speak to a financial advisor or your attorney or a tax advisor when doing estate planning.
Gifts Are an Option
Here are some options to look at:
- The annual gift tax exemption will help you reduce the size of your estate and thereby reduce your inheritance tax.¹
- Look at paying educational and medical expenses for family members. If you pay the institution directly, you avoid the gift tax.²
- Invest in a grandchild’s retirement future. Speak to a financial advisor for independent advice on the various options available to you.
Estate planning is a clearly defined plan that sets out your wishes when you die. It will help your executor to carry out your wishes and help your loved ones carry out your final requests.
The sooner, the better, it’s better to plan your estate now. This way, your assets will be distributed to your beneficiaries instead of having the state decide who gets what.
A will is a legal document that you need to draw up to lay out what your beneficiaries will get and what your final wishes are. Estate planning is the plan you create before you draw up your will.
The main benefit is you can avoid paying inheritance tax.
Putting strategies in place to work out how best to distribute your estate is something important we all have to do. It’s essential to look at your financial affairs and carefully plan out how you want your assets to be distributed when you die. Estate planning can help you to look at the options available to you to make sure your beneficiaries will be looked after when you are deceased.