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Estate Planning is the process of arranging for the transfer of an estate after the death of its owner. It aims to reduce taxes at death and ensure the assets are transferred to the designated beneficiaries as per the wishes of the owner of the estate.
The primary goal of estate planning is to ensure that the estate is used and distributed, both before and after the owner’s death, in a manner that is consistent with the owner’s objectives.
This process should begin as early as possible as estate planning is not only about planning for the transfer of an estate upon death, but also deals with how to build an estate. It is very important that individuals build an estate that will be large enough to provide benefits in the event of death or disability to ensure a desired level of personal and family financial security both before and after the owner’s death.
Furthermore, through the estate planning process individuals will be able to direct, through wills and trusts, how the owner’s intentions for the ultimate distribution of their estate will be realized.
There are five main steps involved within Estate Planning:
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1 |
Estate Creation
- Adequate planning is required and thus it is best to start early. |
2 |
Estate Conservation
- Minimize taxes throughout your lifetime to ensure you maximize the potential of your assets. |
3 |
Retirement and Disability
- Planning is needed for the future needs of the estate owner as well, not just for their family after their death. If you plan to retire at a normal age, how much income will you need and what will be the source?
- If you become temporarily or permanently disabled through an accident or sickness, where will your family income come from? |
4 |
Liquidity
- The majority of people are asset-rich and cash-poor; there is a need to plan for liquid cash in order to pay for the various taxes that arise upon one’s death. The most common way to address this is through a Life Insurance Policy. |
5 |
Death and Equity
- Who will get the estate, and will it be equal?
- Will there be enough money to take care of your family after your death?
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Each individual has different needs and goals, and your personal financial requirements are unique. Our service to you will appraise the adequacy of your existing resources in relation to your personal objectives for your family and yourself.
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