Erven Planning Estate Planning
It’s often difficult to think about what will happen to our loved ones after we die, but most people spend their lives accumulating assets that will need to be dispersed. Part of making a solid financial plan includes making sure everything is in order for when we are gone. Sadly, leaving assets to loved ones is not always without other financial burdens, like tax or legal fees, but these can be provided for by astute estate planning.
Estate planning is the guide that you set out for your loved ones to follow after you pass away. It tells them how you would want your assets distributed. Friends and family may receive a gift for sentimental reasons, but other assets may be of considerable financial value and the recipient may incur tax penalties which may make the gift more than they can afford.
With the assistance of Erven Planning in making a sound estate plan, you can make sure that the transition of ownership of all you value will be seamless and straightforward. You can plan for the tax and legal burdens ahead of time then balance them out with reliable products that will provide needed liquidity for the expected and unexpected requirements of your estate distribution. Estate planning can preserve your estate for maximum benefit to your loved ones, making your gift even more valuable.
Our estate planning includes the synchronization of your three most important documents for a secure financial future. Those three documents are:
- Your last will and testament
- A Power of Attorney
- Personal Directives
These documents cover most situations that you may find yourself in and safely direct those around you as to what you would like them to do.
YOUR LAST WILL AND TESTAMENT
Your will is the most important document for the distribution of all your assets. You can name as many people or institutions as you want, and also name which assets you want to leave them. The choice is yours, but to make sure that everything is dispersed as you wish, we advise you to have it prepared by a lawyer.
A POWER OF ATTORNEY
A power of attorney is a legal document that allows a nominated person to make decisions for you if you become incapacitated. A will is all about the distribution of assets. A power of attorney details your care and the care of your estate, should you suffer some kind of incident that leaves you unable to function normally, like a car accident that results in a brain injury or debilitating illness that leaves you unable to communicate.
It’s hard to think in these terms, but if there is a lapse of time between you being able to make a decision and the time you pass away, a power of attorney must be secured from a court which can add a lot of stress to an already difficult situation. An Enduring Power of Attorney ensures that important decisions can be made in a timely manner.
If you create the Enduring Power of Attorney before such an event, not only will it save important time, it will also mean that you can be in control of choosing who administers your affairs when you can’t. Being prepared does not take long, but the implications of not being so are serious.
Like your will, to be respected a power of attorney must be done by a lawyer and forms an important document in your estate planning.
PERSONAL DIRECTIVES
Personal directives are a list of instructions that you would like your loved ones to follow in certain circumstances. Serious decisions like switching off a life support machine, whether you wish to be resuscitated in certain circumstances, or other end-of-life decisions that may ease the feelings of those who have to make them.
Including a personal directive in your estate planning helps those around you administer necessary duties in accordance with your wishes. It is also to comfort them with the knowledge that they carried out your wishes.
This document does not have to be drawn up by a lawyer, but it may be something to consider when having the other documents done.
At Erven Planning we work with your legal professionals to prepare these documents so that you can maximize the impact of the gifts you leave behind. We are not legal professionals but have decades of experience in creating these documents and ensuring they help secure a successful financial future for those it is intended for.
We provide the foundation for your legal professional to work from and can offer a valuable view on estate planning that will improve the quality of your estate plan.
In preparing for estate planning you need to be able to answer difficult questions, like:
- Who will receive what?
- How will they receive it?
- Have we provided adequately for our families?
- How can I be sure my wishes will be honored?
- Will my assets pass efficiently to my heirs?
- How can I minimize the taxation of my estate?
Although we cannot help you with preparing the legal documents, we can help you with answering these questions so that you have all your bases covered in the event of your death.
Whether you plan to spend everything and leave nothing or create more to leave for your loved ones, estate planning is essential for a smooth transition after you have gone.
At Erven Planning, we have the knowledge, expertise, and products to help make your financial journey a success – ask us!