Estate planning can be defined as the process of planning proper distribution and administration of your assets after your death. It is unique to each family depending on the size, type and financial position. It is considered as a preservation of wealth for the intended beneficiaries. Estate planning is a must for everyone since it makes sure that everything you own including your home, car, bank account, etc. are handed over to the intended people smoothly.
Protection of your wealth can be achieved by various legal tools such as preparing a will, probate, giving power of attorney, life insurance or setting up a trust. Estate planning can help eliminate any uncertainties over the administration of your estate and get the most out of it by
…show more content…
Will
Making a Will is a basic foundation of your Estate plan in protecting those you love. It is crucial if you and your partner are not formally married since common-law spouses do not necessarily have the same property rights as legally married spouses. For a Will to be effective, it needs to clearly indicate the executant. An executant could be any person who can facilitate the execution of the will without any hindrance.
Probate
Probate is the process of legally validating a will in a court of law. All estates need to go through a process of probate. If you have a spouse, one of the simplest strategies is to hold property jointly. If an asset is held in joint name by the spouses, it will not go through probate. Their share of the assets is transferred automatically to the survivor, if one of them dies.
Power of Attorney
A power of attorney (POA) is the next document you will want to complete in your estate plan if you were to become incapacitated due to illness or injury and unable to take your own decisions. This acts as an authorization for a person to act on your behalf in business or private affairs.