It’s amazing how many assets and financial products an individual can amass over the course of their lifetime. From bank accounts, investments, insurance coverage, the purchase of a house or a car to wills and debts. With that said, It’s important that you never lose track of what you own and what you owe.
However, you’re not the only one who needs to be able to access and instantly understand your financial situation, as estate planning takes into account your next of kin. Read on to discover why everyone should have effective estate planning in place and how it will help to make everything run much more smoothly when the time comes.
What is estate planning?
Estate planning is the process of arranging all of your financial matters so that they can be managed with ease should you become incapacitated or pass away. There are multiple benefits that come from comprehensive estate planning, such as:
- Your wishes are carried out: you’ve worked hard to build up your financial portfolio, so it’s essential that your money and assets are allocated to the right people. Estate planning ensures that your wishes are crystal clear and ready to be fulfilled.
- Your loved ones are provided for: as well as supporting your own peace of mind, your loved ones can rest assured that they’ve been taken care of financially.
- You can achieve tax efficiency: estate planning is a great way to minimise the amount of tax that needs paying, allowing you to leave more to your family, friends, charities and so on.
Is estate planning the same as a will?
An up-to-date will is a core element of estate planning. Unfortunately, many people either don’t have a will in place or fail to create a new one following a major life event such as getting married, having children or going through a divorce, which can pose a risk to how your estate is distributed.
Aside from making sure to have an official will written in the first place, the most important factor here is to remember that wills are not automatically updated when your circumstances change. That’s why will management is part and parcel of estate planning, as it confirms that everything within your estate is accounted for and will be passed on to the right people.
A clear view of your financials.
When all of your assets and their relevant documentation are available to view as a single financial portfolio, estate planning becomes so much easier. From property and vehicles to cash savings, insurance policies, investments, pensions, cryptocurrency, debts and other financial products, estate planning is crucial because it allows your next of kin or executor to understand your finances should something happen to you.
This clarity and confidence removes the risk of your loved ones not knowing about certain assets and any debts you hold, giving them a clear picture of what to do next.
With LegacyScore, what could be a difficult, time-consuming and unpleasant process becomes a quick, user-friendly, insightful and invaluable experience for everyone involved. LegacyScore allows you to keep all of your financials in your life and beyond.
Plan your future today.
LegacyScore is constantly evolving and becoming smarter by the day. Our mission is to give you a clear picture of your finances, allowing simple and stress-free estate planning. Sign up for your free LegacyScore account today.