Why is Will Planning Important?

Will planning is very essential as it will provide a secure financial plan for your children and family. This is even more important if you want to decide beforehand who will get what portion from the property and avoid future problems. One can also decide who will get access to the inheritance that you leave for them. This ensures peace of mind and promotes bonding between the family members. 

A will is a written document that notifies the wishes of the benefactor for the distribution of the person’s wealth to members of his family or among his children. It can also be given to charitable organizations, friends, and relatives. It solely depends on the wish of the person doing the will planning. This is necessary for the legal transfer of the wealth of an individual after his or her death. The will is accepted as a document of succession worldwide.

Will planning can be done by an individual on his own. You also can take the help of professionals who will be able to guide you better in the financial distribution of the accumulated wealth. After writing down the will, it has to be signed by two witnesses. The will planning can be done numerous times. The previous wills are then canceled and not accepted in the court of law.

Reasons for will planning

Several reasons have to be taken into account while composing a will. These are as follows:

  • It will ensure you to distribute the wealth as per the wish of the individual.
  • This is also applicable for single assets like FD, Demat account, life insurance policy, bank account, and other such investments.
  • With proper will planning, one can bypass the intervention of the court with regards to issues like succession issues and asset transfers on the death of an individual. This will prevent in avoiding issues and costs related to the process.
  • Separate will have to be made if there are joint holders on assets.
  • Nominating an individual does not ensure smoothly becoming the heirs. They cannot claim ownership of the assets. They then become trustees. Hence having a will saves them from such troubles. 

Hence these are some of the reasons why will planning has gained so much importance in recent times among individuals all over the world.

Comments

Post a Comment

Popular posts from this blog

Top 3 Ways to Avoid Inheritance Tax

Image
Avoid inheritance tax  is a frequently asked question among individuals. We all look for ways to avoid the inheritance tax. We have compiled three ways in which you can avoid inheritance tax.      Put property in a trust   If you put some portions of the property, assets, and investment in a trust, then they are no longer a part of the estate for inheritance taxes. This means that your spouse and your kids under 18 years of age will not be able to benefit from it. For example, you can set up a trust for your grandchildren’s education or for supporting a disabled family member. Either you can set up a trust or you can put one in your will. However, one must keep in mind the fact that some trusts have their tax structures and one might have to pay inheritance taxes. It is better to take advice from experts when setting up a trust.    Leave money for charities   A good way to  avoid inheritance tax  is to leave money for ch...
Read more

Your Complete Guide to Inheritance Tax Threshold

Image
Inheritance tax is paid by an individual who inherits a property or assets that crosses the  Inheritance Tax threshold 2020  limit set by the government. This limit is £325,000 per person. It doubles to £650,000 for a married couple or a couple in a civil partnership. This is applicable until the first person to die leaves their entire assets to their other partner.     Any amount that exceeds this limit is charged at 40% tax. However if the benefactor had given 10 percent of his property to a charitable organization, then the amount is 36 percent. The four percent rebate is quite helpful for many people.   When you plan to give your property or assets to your heirs or beneficiaries, one of the best things that you can do is to keep your knowledge about  Inheritance Tax threshold 2020  clear. This helps a lot in planning for combating inheritance taxes. Take the help of an inheritance tax calculator to understand the amount of tax that is lia...
Read more

The Main Problems with Basic Wills

Image
The Will sets out how you plan for your estate to be distributed to beneficiaries. Without a will, the estate will be distributed according to the rules of intestacy, which may be in line with your wishes. It is, therefore important to ensure that you have a properly drafted Will to ensure that all your wishes are met. When you make a will, you decide who inherits your assets. If you don’t the law decides. If you evacuate assets over a certain threshold there may be a substantial charge to Inheritance Tax . If you own a business or a company, succession planning is vitally important to deal with the ongoing running of the organization as well as future planning and direction. There are also associated capital income tax issues that need to be carefully addressed to ensure the most cost-effective outcome. Estate planning and Will drafting with all these issues in mind is something that Dibbers can advise you on to achieve your objectives and to secure your future and that of the organiz...
Read more