We often think about our investments, how to protect it and how to grow the potential assets. However, nothing would protect your assets when you engage in any illegal activities. Mortality is the most unpleasant truth which one finds pretty hard to accept. At the present times you might be enough satisfied that your dear ones are sufficed with all the needs. Think, what would happen after you die. Your mortality time is unpredictable and what would happen in near future is uncertain.
If something worst happens and your financial affairs are not in proper order, it can be the biggest headache for your loved ones to tackle with. Estate planning is the best way to protect your assets and distribute it evenly among your loved ones. But what does estate planning means? Actually, estate planning refers to preparation or planning of transfer of one’s assets and properties to the legal heirs without much difficulty. It is the act of preserving your assets so that it can easily be transferred to your heirs after your death.
What steps should you take to ensure your estate is protected?
What would happen to us the next moment is unpredictable. When you have enough wealth, everyone including relatives, friends, colleagues, employees and the near ones as well keep an eye on it. They even wait desperately for you to die so that they can control over it. Here are three certain steps which would help you protect your estate without any disturbances by others.
Draft a will
The best and the least expensive way to protect and transfer your authority after you die are to draft a will. Will is the legal statement which contains the details the transfer of ownership of your estate to the designated persons. Will is the legal enforcement which contains the intentions of further distribution of your estate both personal and financial after you die. It provides you the opportunity to decide whom you want to include and whom you don’t. The major benefit of writing a will is that it reduces the stress of your family and they get what they deserve.
In order to prepare a will, one can hire an attorney and get it done while paying a couple of dollars. It is only valid when prepared by the specialised lawyers for this. The complex your finances are, more involved and expensive it is to write a will. In most of the cases, the owners mention that if the reason behind their death is unpredictable or unknown, then in such case their finances would be passed on to some trusts or charitable organisation.
Creation of trust or charitable organisation
When the personal relations of the owners are not so good, they often move forward to form a trust. Unlike wills, certain trusts even provide you with living benefits in lieu of your asset utilisation. Basically, there are two basic types of trust which one should necessarily know. They are:
- Inter Vivos also know as live trust: Inter vivos are basically set up when you are still alive. This is the way of transferring your assets into a living trust and getting appropriate protection of your wealth. Such trusts are both revocable and irrevocable. In case of revocable trust, the entire control over the assets is upon you. However, for the purpose of legal protection, these are basically irrevocable.
- Testamentary: Testamentary is the type of trust which is created upon the death of the person. The main source of funding these trusts is your financial assets. It genuinely provides a better legal protection than the will.
Insurance- a safety net
The most critical and the good component of estate planning and protection are insurance. Insurance not only provide you the options of increasing your estate or finances but also help in funding the trusts. There are various types of insurance that not only protects you but also your assets. Take both business and personal type insurances and provide safeguard your entire assets. It also protects you against various legal challenges.
Estate protection and planning is not just the DIY project which can be done within few minutes. It requires extensive planning and most importantly one should particularly know the will and desire of the person upon whom authority or power of attorney is transferred.
In case if you follow any of the above steps, you should duly take the help of lawyers for wills. They are the substantial proof or testimony of your planning who would carry out further proceedings upon your death. In case you want to update your beneficiaries, you can do it easily. Work done under the appropriate lawyer would save your dear ones from unnecessary legal obligations and challenges after you die. Take essential steps so that protection and transfer of power is done appropriately.