There are many misconceptions regarding planning one’s estate. For starters, many United Kingdom residents believe that estate planning is only for the wealthy. However, there are numerous benefits for everyone to plan for their financial futures.
There are many benefits for having a trust, for instance. One of the primary reasons is that it helps an individual to have better control over the distribution of assets to beneficiaries. Stipulations can be set so that beneficiaries do not receive property, money or other assets until they have reached a certain age or life event, such as marriage.
It is also important to have a will. Without one, the probate system will be involved after someone is deceased. Because it has not been stipulated who the beneficiary is, there are certain rules that will then come into play to determine who will get what. This often results in a complicated and difficult process for one’s heirs to go through.
As with everything else, the cost of setting up a trust varies from situation to situation and will greatly depend on how complex one’s assets are. Nonetheless, it is typically more affordable than many United Kingdom residents tend to believe. It can certainly be worth it in when considering that such action can help keep a person’s family out of the courtroom after they have died.
For United Kingdom individuals that want to help ensure their dependants are distributed property as intended, estate planning is a must. Such planning can designate beneficiaries, division of assets and other related tasks. An estate plan can also establish a contingent to ensure that the person’s requests are carried out as he or she wished.
Source: azcentral.com, Estate-planning issues explained, Veronica Sanchez, Jan. 11, 2014
