Estate planning is the process of managing an individual's belongings. It involves determining how assets will be handled and distributed upon their death or incapacitation.
The process involves the:
a). Allocation of assets to the heirs;
b). Settlement of taxes; and
c). Appointment of executors.
This process can be complicated as decisions will have to be made on how possessions are managed, looked after and conserved. The individuals to distribute the assets will need to be determined and registered. The individual's wishes considered, and ways of settling the individual debts and obligations are defined. How and who will look after the children and minors will have to be determined. Ways of reducing the tax paid will also need to be determined.
Estate planning and what it involves:
Estate planning involves the following:
a). Consolidation of all the individual's assets;
b). It is a way of conserving the family's wealth;
c). Provisions for surviving spouses and children; and
d). The requirement for leaving a legacy for charitable purposes.
The procedures followed during the estate planning include, will writing, limiting tax payments, establishing guardians, setting up trust accounts, setting up life insurance arrangements, funeral arrangements, gifts, setting up of powers of attorneys, using probate to check the validity of a will, asset assessment. The court of probate is responsible for supervising the probate process. The executor is responsible for locating, identifying and looking after all the assets of the deceased. The executor is also responsible for estimating the value of the estate, filing income tax and tax returns, seeking the right to distribute the leftovers to the beneficiaries.
The existence of estates contributes to the overall growth of the estates market. The contributions are in the form of taxes, estate administration fees, trust taxes, estates valuations, legacy funding, inheritance taxes and capital gains taxes. Payments of these taxes result in the expansion of the estates market.
Jumleap Estates & Wills Planning Private Limited, confirms that nothing stated on this article constitutes advice on which you should rely. Our blog articles are for general information purposes only. Professional or specialist advice should always be sought before taking any action relating to any views, issues or matters discussed. Jumleap Estates & Wills Planning Private Limited will not be held responsible for any action taken as a result of this article.