Security is one of the best gifts you can leave to your loved ones before you leave this world. Security that will protect them and keep them safe for many years. People now have more money than ever before thanks to the booming economy. Using this money wisely during and after your time on Earth can benefit you. Thus, estate planning can be a game changer in ensuring that your hard work throughout life does not go to waste.
Estate planning is no longer restricted to the upper crust of society. It all comes down to the fact that if you have even one asset or possession, you should think about estate planning. Estate planning may sound complicated, but it is simply planning for the future so that your hard-earned money is best utilised.
Estate planning entails creating a will that specifies how your assets will be distributed among your heirs. Estate planning is not limited to a will; it can also include financial and medical decisions, as well as trust. A will can be written with or without the assistance of a professional. It must be signed by two witnesses who are not heirs or beneficiaries of the will. It is always beneficial to obtain a certificate of sound mind when writing your will. It is important to remember that you can edit during your lifetime.
The following are some of the most important reasons why estate planning is essential:
- The unpredictability of life
Life is unexpectedly unreliable, and you never know what awaits you tomorrow. It’s always a good idea to live life to the fullest, but as Benjamin Franklin once said, “Failing to plan is planning to fail.” If you do not have a will in place, it may result in lengthy court battles between your loved ones. A reason to remember you after you leave this world will be one of resentment and anger, not love. Planning your estate will show your loved ones that you thought this through and gave it thoughtful consideration.
- Tax benefits
In India, when a successor receives an inheritance, he/she/they are not required to pay any taxes on it because the inheritance tax was abolished more than four decades ago. This is a significant benefit because it allows the bereaved family to save money that would otherwise be spent on taxes. Insurance schemes ensure that beneficiaries receive assistance before creditors do. As a result, estate planning has more tax benefits than liabilities.
- A token of remembrance
Throughout your life, your family should be aware that you have made the necessary arrangements. This gives the family a sense of security and preparedness. Long and drawn-out court battles can be avoided, and as a result, costs are reduced. Given that you have already decided who will receive what, your hard-earned money is not ripped apart like prey by a swarm of vultures. Messes and chaos are thrown out the window, leaving only a token of remembrance for your family. They will remember you as a wise individual who considered every possibility. You certainly leave a legacy.
You must begin planning your estate as soon as you are legally permitted to do so. You can keep updating it every five years as you progress through life’s major events. Estate planning may be an emotionally challenging endeavour for you because you must imagine yourself no longer with your loved ones, but it may also be the best decision you make to ensure they smile even when you are not present. It is critical to remember that estate planning is intended for everyone. You can’t take away your loved ones’ emotional burdens, but you can alleviate their financial stress.
Remember what Winston Churchill once said, “We make a living by what we get, but we make a life with what we give.”
