Estate planning is not just a collection of legal documents, but provides clarity on how exactly those assets would be given to the family. Have you ever thought about how your healthcare and financial decisions will be handled if, for some reason, you are unable to do so for yourself?
Planning not only allows you to exercise control over almost everything, but also saves family and beneficiaries from a financial mess in a time of distress. The pandemic has revealed just how fragile everyday life can be. Your money and assets and your instructions can all get lost. It is important that we spend time looking at estate planning because it is the best way to give your family peace of mind knowing everything has been carefully crafted.
The estate plan needs to have all legal documents in place to ensure no beneficiary gets stuck in a legal battle while trying to make a claim. It also needs to protect your beneficiaries from the massive tax liability that could fall on them when they inherit your estate. Tools like life insurance can help you prepare for beneficiaries’ liabilities and provide liquidity during inheritance.
An ideal estate plan, is not only about what happens when you die, but also when you retire and stop actively earning. One of the things this pandemic has taught us is building a consistent stream of income from your estate plan is the key. Over the last 12 months we have seen a 200 per cent increase in families enquiring about how to do proper estate planning because it is not just about buying a product, but rather it is the plan itself that matters. Everyone lives two lives, the first one ends with our last breath, the second one ends when our name is mentioned for the last time. The first death we have no control over, but our second death is in our hands.
As you finish reading this article, think about how you would like to be remembered? You will be a memory for your family and friends. Just what type of memory do you want it to be?