Estate Planning

Make Best of Estate Planning

Owning an estate and running it smoothly is a task in itself. Estate planning is a valuable part of wealth management if you own an estate having a huge set of assets and complexities. If finances and operational aspects of an estate are sorted then it is possible to reduce expenses and save taxes. If the processes of estate are properly regulated it is possible to have easy and smooth transitioning when needed. You can pass on your legacy to your next generation without putting yourself in legal trouble.

Estate planning helps you to plan your financial and family goals more systematically even after your death. It makes sure that after your demise the assets will be passed on to the people you want them to.

Formulating legal documents or formal structures in the form of:

  • Wills
  • Designations for beneficiaries
  • Trust formation
  • Gifts
  • Property ownership
  • Powers of appointment
  • Power of attorney
  • Durable financial power of attorney
  • Durable medical power of legal representative

All these listed processes help you control functioning of your estate even after you are not physically present. It will ensure that you achieve financial as well as personal goals.

Estate Planning Goals

Estate planning is focused towards achieving 5 major goals and they are:

  1. Financial Stability: Goal of estate planning is to help you manage everything in a way that you can not only support your family easily but also provide for others keeping your values intact.
  2. Easy Transition of Wealth and Assets: You have enough power to decide transfer of property and assets disposition with supporting paperwork to make it final.
  3. Guardianship for Minor Children: One of the important parts of estate planning is guardianship. It allows you to decide who will take care of your minor children after your death.
  4. Tax Reduction: It is possible to reduce or sometimes eliminate tax amounts on your estate by doing strategic estate planning.
  5. Using or avoiding probate: It is up to you, you can totally avoid probate or use it strategically to make sure your wealth and assets go legally transferred to the person you desire.

Estate planning is a strategic and tedious process. For simplifying the process you can take professional help. At Top Financial our financial advisors will help you in achieving different goals of estate planning and reap maximum benefits.

Process followed during Estate Planning:

  • First step to analyse your current financial condition, explore alternative options available and decide what will be most suitable and beneficial at the time.
  • List out necessary steps that must be taken to increase assets value for increasing benefits.
  • Get an estimate of current tax liabilities and come up with a way to minimize them through proper business and personal planning.
  • Conduct review of important business-related documents like shareholder agreements along with your will.
  • Calculation of your estate liquidity along with cash in hand and if it will be sufficient for paying assets related taxes and final settlements. If you have any insurance policies like life or disability insurance then review their worth as well.
  • It is important to take suitable steps to maximize retirement income.

What Makes It Different?

  • The compensation received acts as an alternate income in case your family depends on your income source.
  • Allows you to take as much as time off from work without taking stress about loss of income.
  • Stress-free recovery period.
  • You don’t have to pay taxes on the received amount.
  • Amount can be spent to meet any financial need.
  • Most of the policies give free facility of getting a second opinion for illness.
  • Your spouse or dependent child can also be covered under the policy.
  • Return on Premium on Maturity (ROPM) i.e. your paid premium will be returned if no claim is filed till maturity.
  • Return of Premium on Death (ROPD) feature of policy ensures that the nominated person receives the amount you paid as premium after your death.
  • Investing in this policy does not involve any financial risk, it can be considered as a type of savings account.
  • You are eligible to get insured under critical illness policy till the age of 75.

Following these steps will help you make most of estate planning.

Interested in Estate Planning