In Australia, after the owner’s death, 75% of estate cases are taken to court. This situation is due to the lack of proper estate planning and last will. It takes a considerable amount of time to resolve the court cases. The beneficiaries may not be able to experience or control the properties during this time. The disputes between beneficiaries can be avoided with proper estate planning and arranging reading of will. It helps to evade confusion between beneficiaries. Estate planning also has many other benefits like tax reduction, avoiding problems in the family, etc.
Benefits Of Proper Estate Planning
Estate planning might not feel necessary in the lifetime. But due to the lack, many problems can arise after the death of the owner.
- Protect beneficiaries and children: Even if the person dies without a will, the estate plan will have the direction for distributing the property and other directives. It makes sure that the wealth of the owner transfers to the correct beneficiaries without any legal complications. Also, those with minor children might need a responsible person to look after the child. The person can leave the directives within the estate plan for this. It also ensures that the person can distribute the wealth after death to all beneficiaries regardless of the relation.
- Health care to owner: The estate plan can benefit the person alive. If the owner cannot direct on the health care needs, an attorney can arrange all the necessary facilities based on one’s estate plan.
- Tax saving: The lack of proper estate planning results in several papers works by the beneficiaries causing a large amount of tax. Thus a decent inheritance planning reduces the tax.
- Time and money-saving: A decent last-will can save the person and their beneficiaries from losing money on paper works. In the absence of a fit will or estate planning, the distribution of wealth will be under the court. And this process will cause money and take a lot of time.
- Avoids family problems: A well written last will or estate plan and reading of willin the presence of family members will help avoiding problems. Thus an estate plan can keep harmony in the family even after the death of the loved one.
Things To Know On Making Of The Will And Estate Planning
In Australia, a study showed that 45% of Australians do not have a will. The making of the will and estate plan has a significant effect on the life of children or beneficiaries. So before making the plan, know about different aspects of an estate plan and last will.
- A testamentary trust will: Those who want to keep their property as a trust can choose this method of last will making. It will give the power of controlling the whole property to a beneficiary. But all the other recipients will be able to have the advantage of owning the property or business. It can reduce tax.
- Protective trust wills: Not all the beneficiaries will be able to look after the wealth they acquired. To help such vulnerable recipients, one can put a protective trust in the last will. This trust will help in managing the acquired wealth for the sake of the beneficiary.
- Special Disability Trusts: The chance of disabled recipients can not manage the property is high. The special disability trust can help a disabled person in managing the property or other businesses. This trust is regulated by the commonwealth government to provide support for legally disabled people.
- Mutual wills: It is also known as inheritance agreement. This agreement will make sure that the wealth is distributed to the owner’s children after the death of his spouse.
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