From Assets to Inheritance: Why Estate Planning Is a Must for Every Family

It is very important to understand what estate planning is as one can dedicate their entire lifetimes to diligently acquiring wealth and assets, motivated by the desire to provide financial security to loved ones, but considering the fate of these possessions in the event of your unexpected passing is also important.

What Is Estate Planning?

Before understanding estate planning it is important to understand the meaning of the term 'estate'.

Estate means everything you possess, starting from your home, car, businesses, and bank balance to life insurance, investments, and personal belongings like jewellery, furniture, appliances, etc.

Estate planning typically refers to the process of creating a thorough strategy for the allocation of your possessions upon your death.

It takes into consideration not just who you want to receive your belongings after you pass away, but it also accounts for whom you wish to manage your businesses and daily affairs if you are unable to manage them yourself for any reason.

Why Is Estate Planning Important For Every Family?

Here are a few reasons for why every family must consider estate planning:

• Protects your loved ones: By creating a comprehensive estate plan, you can specify how your assets should be distributed, ensuring your loved ones are taken care of according to your wishes.
• Minimises tax liabilities:  Without proper estate planning, your possessions could be subject to significant estate taxes, potentially reducing the inheritance left for your beneficiaries.
• Preserves family harmony: Family disputes over inheritance often lead to long-lasting rifts. Estate planning provides an opportunity to communicate openly with family members about your intentions and decisions.

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