Who doesn’t want the security of their finances and assets? Especially if the concern is posthumous. Well, estate planning offers one an opportunity to outline the ways in which they would want their wealth to be managed after death and simultaneously secure the safety of their assets and finances in the future. Estate planning can be undertaken at an early age and needs the assistance of a financial advisor who is an expert in Phoenix financial planning and will provide detailed guidance on the changing laws and tax implications, as well as the need to update one’s documents.
What is an Estate Planning?
In the simplest term, estate planning refers to the development of an advanced financial plan containing the names of people or organizations who would receive the possessions after the individual’s demise.
However, an efficient estate plan is not only restricted to this but includes a vast arena of financial affairs, including instructions on caregiving and financial matters if a person is incapacitated before death, provision for disability income as a replacement of one’s income against their inability to work due to illness or injury, provision of life insurance for one’s family after death, transferring the business to someone after one’s retirement, incapacity, death or disability, minimization of taxes, legal fees, court costs, involved in funding assets for a living trust, or in the upgradation of beneficiary designations.
Importance of Estate Planning:
Estate planning allows people to have complete control of their wealth and assets and ensure the utmost financial safety for family members after death. It helps one’s family to remain stress-free and acts as the dead person’s voice on the division of assets. Apart from being a practical financial roadmap in itself, it also continues familial tradition and legacy.
Estate Planning as a Continuous Process:
Most people assume estate planning to be a one-time process. But this is not true. An estate plan needs frequent upgradation along with the change in the family’s financial status. It is advised that one review their estate plan every year and remain conscious of the amendments of tax laws or state laws that might impact the plan.
However, it is also essential for one to know when to upgrade estate planning. In that case, consulting a financial advisor would be the best decision, who would offer necessary help in document upgradation and will also reflect on the necessity of upgradation if any.