Estate planning is something we all have to do sometime in our life because, death is common to us all. It is the process of creating a plan to show how we want our assets, such as the hard-earned money or savings are to be distributed after our death.
Importance of planning
Some of the most dangerous and tragic incidents that we hear of today are actually the cause of a person failing to create an estate plan before his death. There is the potential for legal disputes in the case that a person dies without leaving their will or living a trust. Such instances have been recorded a countless time, some even leading to lifelong disputes between the suffering individuals or families.
Estate planning makes sure that the cause we care about or specially, the people we love receive the things that we desire to give them, thus eliminating any chance of a future dispute or an emotionally charged situation.
Documents included in estate planning
The most basic documents needed for estate planning is usually common to all countries. A will is the most basic and core of the planning process. It is usually drawn up by property dispute lawyers Melbourne city has many available. In the context of Australia, a revocable trust, personal directive and an enduring power of Attorney are also recognized as documents of similar importance.
The best time for you to do estate planning
This may probably be one of the last things that a person may want to do. The thought of what happens after death is often not a happy memory to think upon. However, it is never too early to do estate planning.
Dividing of inheritance in the case of no estate planning
Spouses and children were the rightful inheritors in the case that a person leaves no will at the time of death. Unfortunately, children from previous relationships did not receive any share of this inheritance, which caused many emotional disputes among children. However, After the new legislation passed in the NSW parliament, a share of the inheritance is also to be inherited by the children from previous relationships.
Purpose of a trust in estate planning
A trust offers a few advantages over a will, however generally, a will is the most preferred. The difference is that a will takes effect only after the person’s death, but a trust will be put into action immediately after been created. Some individuals and families prefer this type of estate planning, and it is a little more expensive compared to a will.
Things that should never be included in a will
As explained before, a will is the most vital part or document of an estate plan. Therefore, there are several things that you need to know that should not be included in it. Funeral instructions, Contingency gifts, Provisions for pets and the property that is held in a joint tenancy or a living trust are some of these. Keeping yourselves aware of such things could help you in creating the best estate plan.
Therefore, it is clear as to why the role of estate planning is no doubt something considered of very importance in Australia.