An estate plan sets out how you want to distribute everything you own to you beneficiaries (those that will inherit from you after you die).
Your estate is the total of everything you own, from your house through to your smaller, personal possessions. In more formal terms, it’s your net worth.
Exactly what you’ll need in your estate plan will depend on your assets and your family situation. Options exist for people of all income levels, no matter how you would like your assets distributed following your death. Here are some of the elements of an estate plan;
You can put off making a Will until it’s too late and this poses all sorts of problems for the people left behind. Not making a Will could mean that some, if not all your inheritance either goes to the wrong person, or to the state. Without a Will you cannot be sure that those you wish to benefit will actually do so e.g. Your spouse/ civil partner will not automatically inherit all your estate and ‘common law’ partners may not receive anything at all.
Trusts are an effective way to avoid common scenarios that could result in your beneficiaries missing out on a large portion of their inheritance. Such scenarios include;
Setting up trusts could protect intended inheritance from all the above, and more.