Making informed, unbiased decisions is paramount, yet often, our fears, comforts, and biases sway us away from crucial planning. Take, for instance, the choice between a London holiday and designing an estate plan: most people would opt for the former to evade the difficult decisions and complexities of estate planning. An estate plan is about the preservation and distribution of your wealth to loved ones during and after your lifetime, ensuring that your assets are passed down in accordance with your wishes while minimizing legal complications. Despite its significance, many fail to accord it the importance it deserves. Let’s explore the reasons behind this reluctance.
Facing one’s mortality is never easy. While it may be difficult to discuss such a subject, especially among your loved ones, not discussing it at all does not prevent the event from taking place. Just as you strategize to accumulate and manage wealth, it is prudent to create an extended plan to ensure a seamless transfer of assets to your loved ones.
Drawing up an estate plan means deciding who gets which asset from your estate. You need to evaluate the future realistically by evaluating these likely scenarios: what is the likelihood of your spouse remarrying? What if your child died unexpectedly? What if there is a divorce in the family? Do you wish to leave considerable assets to a family member who is a spendthrift or prone to wrong habits? Such and many more questions that beg emotional decisions need to be taken but this should not be stop you from making a decision at all as it will result in you losing control of who receives what altogether.
Even investment-savvy people erroneously believe that estate planning is reserved for the super-rich orRead more on livemint.com