Estate and Financial Planning
Many people confuse estate planning with financial planning. The main differences are, financial planning is the process of creating wealth, whereas estate planning is protecting the accumulated wealth and ultimately distributing the wealth at the appropriate time.
Financial Planning
It is important to review and maintain your plans regularly and re-assess your position, both financially and personally in this ever-evolving global market.
Estate Planning
It is imperative that you obtain the correct advice and assistance from an advisor who has the expertise and experience to assist you to identify areas of concern and to put a suitable structured plan in place. This could ultimately avoid unnecessary distress and pitfalls.
Estate planning involves drawing up a Last Will and Testament (Will) to ensure the correct people inherit your estate on your passing away. This process needs to fulfil your specific wishes and instructions where possible and comply with the legal elements of structuring a valid will. Your plan should also cover areas of commitments where there are more complex matters, for example, minor dependent children, disabled dependents, second marriages, business ownerships etc.
A further advantage of putting an estate plan in place is that there may be estate/inheritance tax liabilities and legal fees which may be reduced or avoided through the implementation of the correct plan.
In addition, estate planning deals with further concerns and may include healthcare, welfare and financial decisions for you should you become disabled or unable to make decisions for yourself. These types of plans may involve drawing up Power of Attorneys giving a responsible trustworthy person the authority to act on your behalf for your well-being.