Everyone have an estate. Your estate is comprised of everything you own— your car, home, other real estate, savings accounts, investments, life insurance, furniture, jewelleries etc. No matter how large or how little—you can’t take it with you when you die.
When death happens—and it is a “when” and not an “if”—you probably want to control how your assets are given to the people or organizations you care most about. To ensure your wishes are carried out, you need to provide instructions stating whom you want to receive something of yours, what you want them to receive, and when they are to receive it. You will, of course, want this to happen with the least amount paid in taxes, legal fees, and court costs.
Estate planning is therefore making a plan in advance and naming whom you want to receive the things you own after you die. However, good estate planning is much more than this and is planned as per need and profile of the person who wish to plan for it.
Estate planning is not just for “retired” people, as we can’t predict how long we will live as illness and accidents happen to people of all ages.
It is not even just for “the wealthy,” either, although people who have built some wealth do often think more about how to preserve it.
Individuals put off estate planning because they think they don’t own enough, they’re not old enough, they’re busy, think they have plenty of time, they’re confused and don’t know who can help them, or they just don’t want to think it. Then, when something happens to them, their families have to pick up the pieces.
Therefore the key points relevant to estate planning are:
- It help you organize your asset records and correct titles and beneficiary designations.
- The best time to plan your estate is now.
- It is for peace of mind.
It is now believed that CFPs who are technically expert in personal finance issues relating to financial products, personal taxation, and other laws related to personal finance, managing and budgeting personal expenditures has a better understanding for having a estate planning executed in a better way. Estate planning is one of the areas which is under the course material of the CFP certification and board promotes its members as an expert for “Estate Planning”