Rotimi Obende
The concept of Estate Planning dates to ancient civilizations, when people began to think about how their assets would be distributed after their death. In ancient Egypt, for example, people would often create a Will, which was a legal document that outlined their wishes for the distribution of their property. They would also designate heirs, who would inherit their wealth. This practice highlights the enduring importance of planning for the future.
Securing your future and those of your loved ones is of utmost importance, and you can achieve this by having an Estate Plan. Knowing and choosing the right Estate Plan can be complicated, as you will need to consider peculiarities and other factors that are specific to you alone. Because of the complex nature of Estate Planning, you will need practical advice and an expert institution to guide you. This article will explore the following five factors, offer practical examples, and provide valuable insights to assist you in effectively managing the Estate Planning process:
- Define Your Goals and Objectives: To commence your Estate
Planning process, it is important that you first define your goals and
objectives. Think about your assets, consider how you want your wealth
distributed, any philanthropic goals you may have, and other specific
wishes you want fulfilled. For example, you may want to ensure that a
portion of your Estate goes towards supporting education or healthcare initiatives.
By clearly defining your goals, you can tailor your Estate Plan to reflect
your values and intentions.
- Seek Professional Advice: Estate Planning can be a
complex process that involves legal and financial workings, which is why
it is essential that you seek the guidance of an expert. There are a few
estate planning institutions that can guide you and help you navigate the
legal requirements and tax implications while ensuring that your Estate
Plan complies with the current laws and regulations governing the
jurisdiction where you reside. At FBNQuest Trustees, we are fortified with
a team of experienced professionals that will ensure you choose the most
suitable Estate Plan that speaks to your need. Our reliable advisors can
assist you in making the right choices that safeguard your assets and
ensure seamless transfer to your beneficiaries.
- Determining the Right Instrument: With your intentions in mind, `professionals
will provide tailor-made advice on the appropriate tools to adopt, which
could either be Wills, Trusts, and Powers of Attorney. For instance, a
Living Trust allows you to manage and distribute your assets during your
lifetime for your benefit and that of your loved ones. Even in the event
of incapacitation or death, the Trustee must still adhere to the terms
outlined in the Trust Deed. A Will, on the other hand, outlines your
wishes for asset distribution and guardianship. This, however, only takes
effect upon your demise. Understanding these documents will enable you to
make informed decisions about their inclusion in your Estate Plan.
- Consider Family Dynamics: When planning your Estate, it
is crucial to consider your family dynamics. Let's explore a typical
scenario: You have a family-owned business that you wish to pass on to
your children. However, you have one child who is actively involved in the
business while the other pursued a different career path. In this case,
you may want to structure your Estate Plan to ensure a fair distribution
of assets, acknowledging the dedication and involvement of the child in
the business. One possible solution is to establish a Trust that appoints
a child who is skilled and knowledgeable in the business as a director, while
the other child takes on a less active role or no role at all. The Trustee
can then distribute profits according to the terms of the Trust Deed. By
addressing these unique family dynamics, you preserve family harmony and
ensure a smooth transition of both the business and other assets.
- Regular Review and Updates: It's crucial to understand
that Estate Planning requires continuous attention. As life situations,
laws, and financial conditions change over time, it's essential to
regularly review and modify your estate plan. Births, deaths, marriages,
divorces, or financial status changes may require adjustments to your
plan. It's important to keep your Estate Plan current and in line with
your desires. Regular reviews are a great way to ensure everything stays
up-to-date and accurate.
Choosing the right Estate Plan requires thoughtful
consideration, professional guidance, and regular reviews. By defining your
goals, seeking expert advice, considering family dynamics, and fostering open
communication, you can create an Estate Plan that reflects your wishes and
secures a legacy.
Rotimi Obende is the Head of Private Trust, FBNQuest Trustees.
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