Major life events can affect estate planning goals | Whuff News


A person’s estate plan may need to be changed from time to time depending on circumstances and lifestyle changes. Before we explore what these life-changing things are, let’s understand the basics of the concept.

The ABC of estate planning: That is, estate planning includes the preservation, management and distribution of a person’s assets after his death or incapacity due to illness. Such assets can include houses, jewelry, cars, pensions, insurance policies, stocks, personal savings and any other valuable asset.

The most researched methods for estate planning are writing a will or creating trusts. People plan estates for various reasons: to save their family wealth, to make sure that people who depend on them are taken care of, or to leave a charitable legacy, etc. -high-net-worth individuals (UHNIs). A good estate plan will ensure that a person’s assets are distributed to the rightful beneficiaries as intended and without family conflict. Here, we highlight important life events that require a change in strategy.

Marriage or Divorce: One of the biggest tasks during estate planning is naming beneficiaries for bank accounts, insurance policies, wills, and other important assets. In the event of a marriage or divorce, the list of these benefits will change even more. For example, if a person gets married, they likely want to include their spouse’s name in their estate. And in the case of a second marriage, the name of the new spouse should be included. In addition, a person will want to make sure that the children from their first marriage are counted; it can also refer to a former spouse, in a special case, if the separation is amicable.

Children: Having a child means a significant reassessment of life’s priorities. There can be different expressions in this section, depending on the child/children being asked to live, adopt, foster or even adopt. Each of these conditions needs to be recorded in the following fields. For example, while an adopted child is a legal heir by law, a step-child, no matter how unloved, needs to be officially named in the list of a person’s estate to be a blessing.

Personal wealth: This is very important for HNIs and UHNIs with special wealth who have investments in successful start-ups and young companies with the potential to turn into Unicorns. For them, estate planning can help reduce the impact of gift and estate taxes and shield assets from creditors during a person’s lifetime. It can also help to extend this protection to the chosen people and protect their inheritance from creditors and good management after the death of a donor.

Medical emergency: A medical or health emergency can affect anyone at any time. Therefore, in the event of a serious health illness or chronic illness, a person should review the estate planning documents and consider who they want to delegate responsibility for. financial and medical decisions in the event of loss of mental capacity or future disability. Records must also be provided and shared with financial institutions to further verify a person’s wishes.

Death: Unfortunately, you may outlive a trustee, representative, health care representative or guardian named in your estate planning document. Therefore, it is important to continually review and update your estate plans to reflect new developments and remove names when the beneficiary dies.

Residency: A change in residency is also an important factor that can affect a person’s estate planning because it involves a change in tax status and many other laws and regulations. money. Therefore, when there is a permanent change to another country or a change in the status of citizens, an estate plan must be reviewed and updated to reflect the changes. all.

Failure to do an estate plan can mean that your wealth and assets can end up in the wrong hands, leaving your loved ones in a difficult position.

Sreepriya NS is the director and chief executive of the office, Entrust Family Office

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