Planning for the future is the best thing anyone can do while they live. This also means planning for the future when we are not there. Someday all of us will have to breathe our last. Our death must be a passing phase to our family and friends. It is better to face the reality and understand the practical problems others might experience after our death. To avoid the government taking over our assets and maintain peace among our kin, it is essential to venture into estate planning. With this all the assets earned in life will be passed on to people of our choice through a registered will.
Estate planning is not limited to just property/land we own. Every item purchased in our lifetime can be handed over to our kin. While the assets are small, all of it can be passed on to just one person. This person must be made the beneficiary in the registered will. This will can be changed based on our choice and preference till our death. The recent will made just before death is considered as the final one. Assets can also be broken up among many beneficiaries and be provided in the will. This acts as a formal and legal instruction of the deceased to hand over the assets to the beneficiaries based on the deceased’s wishes.
The will is not limited to physical assets owned by us. It is also very important to name a guardian for our minor children in case something does happen to us. When we have mentally challenged or dependent parents, it is better to name a guardian for them in our will as our final word to ensure they are taken care of after our death. In case of providing financial assistance for the dependents after death, it is good to make a trust and give power of attorney to the executor to manage them from the funds. In this way the money will be exempted from unnecessary tax, the rightful heir will receive the money and the funds will be properly utilized.
A lot of incidents can happen in life and uncertainties are a part of it. In case we are to face a situation to live a life in a vegetative state then proper arrangements must be made in advance to aid our finances and yet be able to support the dependents. In the will it can be made clear on what has to be done to us in case we may have to be on life support and will never wake up. In such situations the close family circle might be given a choice to make decision or we can express our wish to be taken out of life support or wish of donating organs can also be written in the will. After death, the instructions for our funeral or what to do with our deceased body like bury/cremate/donate to hospital can also be mentioned.
Estate planning involves naming an executor and an administrator. A solicitor can also become an executor. An executor is the person who will bring all the terms expressed in written will to execution. They can also be given power of attorney to manage finances for the dependents. It is never late to make a will. Making a will is important and necessary, which can be changed to our preferences in future. Making a registered will eliminates uncertainties about the asset distributions and gives clear instruction to the executors on the way the things must be dealt with.