Is it Necessary to Have an Estate Plan Before Death?

Life is uncertain, and this pandemic has taught us the same. Death is inevitable! We all will die one day or the other. But, it’s important to think about our loved ones’ life after our death.

People tend to devote more time to planning a vacation, choosing a car, home improvements. But don’t care much about assets and finances. Deciding on who will inherit the assets after you’re gone is crucial. Of course, nobody is looking forward to their death. You need to make sure your loved ones are protected when it happens. This is when estate planning comes the play. It’s all about protecting your loved ones. Neither age nor health determines whether you need an estate plan. It’s a good idea to take care of your finances until it’s too late.

You’ll want to take a look at the reasons why is it necessary to have an estate plan after death as shared by leading trust lawyers in Perth.

Save Money

Without a proper will or estate plan in place, settling your financial affairs after your death can be difficult and have a long-lasting and expensive impact on your loved ones. This is for all classes of people, no matter if you don’t own a villa, large IRA, or some valuable assets to pass on. If you die without a proper will, the court will decide who will get the assets without any input from your loved ones you’ll leave behind. In addition, your loved ones have to pay tax and legal fees, etc.

When you have a proper estate plan, it will be transferred to your heirs without creating the smallest possible tax burden for them. A large amount can be saved from federal and state estate taxes and state inheritance taxes. Without a will, the amount that your loved ones will owe to others could be quite a lot that you’d have never imagined.

Prevent Disputes between Family Members

You’d have probably heard about the horror stories of claiming the assets left by the dead one. When someone dies with lot of money and assets and without a will, the ordeal the heirs go through can’t be described. It could be so painful watching them fight for the assets, leaving your heirs no choice. Such disputes can get ugly and end up in court. Preventing the dispute between the families is yet another reason why estate planning is necessary. Seek the advice of estate planning lawyers Perth for a proper estate plan.

Protect Beneficiaries

It’s true that estate planning was once considered for only high net worth individuals. It’s not the same today. Nowadays, even middle-class families plan their estate when something happens to a family member, who is the breadwinner. That’s because the goal of estate planning is to protect the beneficiaries and ensure the assets and finances are passed to heirs.

Need help with planning your estate? Get the assistance of estate planning lawyers in Perth. 

Why Should You Establish a Trust for Estate Planning? 4 Reasons

One of the most common questions that lawyers get asked is whether a trust is necessary or not. Just in case you didn't know, a living trust gives more control over your assets in the event of incapacitation or death. This means you will have more control or power over how your assets are distributed amongst children or your preferred beneficiaries. There are also other important reasons as to why creating a trust makes sense. Reputable estate planning lawyers in Perth list out the following benefits:

Avoid probate:

Probate is a court-led process, which is complex and time consuming. During the probate process, the court will be examining all the provisions and assets included in the will. There will also be a waiting period, during which the beneficiaries will have no access to any of the funds or properties in the estate. When you have a living trust, you can avoid probate. Your family members don't have to go through the hurdles of this process, thus letting them save their time and money.

Incapacitation:

Another benefit of having a trust is that it can be imposed when you are incapacitated. During such circumstances, a trustee will control your assets and manage them just the way you wanted. 

According to the estate planning lawyers in Perth, your trust should specify in detail how your assets must be taken care of when you are incapacitated, and what needs to be done after your death. However, this is not the same as a power of attorney. Married couples can also establish a trust in order to set aside assets for the surviving spouse.

Protect Your Assets:

Having a trust will secure your property from creditors or lawsuits. If a beneficiary of your assets has a lawsuit filed against them, your trust will help protect your assets and keep them inaccessible to creditors.

Flexibility to Manage Assets:

Having a trust lets you decide how your assets must be distributed under different circumstances. There are different types of trusts available for you to consider. The most common types include revocable and irrevocable living trusts. 

A revocable living trust, as the name suggests, is a trust that can be changed or revoked by the grantor any time they want. An irrevocable trust remains fixed. Another popular type of trust is the income-only living trust. Get in touch with the certified trust lawyers in Perth, in order to know how your assets must be managed. Simply put, having a trust gives you the flexibility to manage and distribute assets as per your requirements.

Save money and protect your property by establishing a trust for estate planning. To get useful guidance and assistance in this process, hire a good law firm of a recognised migration lawyer in Perth today.