Having overseas assets without instruction as to their distribution when you die is a disaster awaiting your loved ones.
If you have assets in more than one country then Estate planning is for you. It alleviates the financial impact of your death on those you leave behind … even if you only possess a small number of assets.
Here are some valid reasons why you should consider your own plan:-
- Control the distribution of your assets
Depending upon the jurisdiction in which you live or own property, you may not be free to decide who should benefit from your estate when you die.
With efficient estate planning tools, you can nominate beneficiaries during your lifetime and pass on benefits when you pass away, or overtime, long after you have gone.
- Pass on your wealth quickly and easily
Many countries use the probate system for distributing property when somebody dies. It can take time and cause financial stress.
Estate planning can avoid the possible delays and the expenses associated with this legal process.
- Keep your financial affairs confidential
If you have married more than once, you may want to ensure that assets are held solely for the benefit of your children and not for any stepchildren. Alternatively, in the same circumstances, you may want to ensure that assets are held solely for the benefit of your current spouse/partner and not for an ex-spouse/partner.
You need solutions that are private and can offer greater confidentiality, enabling you to choose who you wish to benefit from your assets. This can be particularly useful in overcoming complex family situations.
- Avoid potential tax liabilities
In some countries, assets left to beneficiaries are subject to estate duty and inheritance tax.
Using the right vehicle for estate planning can help to avoid unnecessary tax and eliminate serious tax consequences for your family.
- What if you become incapacitated?
Most people, when thinking of death, consider a Will as being the right document to have in place for your loved ones but this only becomes effective when you die.
Should you become disabled or seriously ill, estate planning can ensure that your estate looks after you through a Power of Attorney. You may also need your assets to pay for your care so it is worthwhile to keep legal, administration, and tax costs to a minimum.
- Provides Certainty and Peace of Mind
When drawn up correctly, an estate plan sets out clear instructions to deal with all of your assets.
This can help prevent you from unintentionally disinheriting someone, can help you provide care for a loved one with special needs into the future, and even protect assets from certain people.
The more we own, the more we must consider what happens to these assets when we die or become incapacitated. This becomes even harder with assets overseas and the different estate and taxation rules in place around the globe.
If you want your assets and your loved ones protected when you no longer can do it, you will need an estate plan. Without one, your heirs could face huge tax burdens and the courts could designate how your assets are divided, or even who gets your children.