5 Reasons Why Estate Planning is Important
Find out how you can leave a legacy to your loved ones
Let’s say you have a family of four, you own a couple of cars, a nice house, and some money tucked away in savings and investments. In the event of your demise, who gets the things you leave behind? Is it family? A relative? Or perhaps an organization you care deeply about? To carry out your wishes, you need what is called estate planning.
What is estate planning?
Estate planning is making the necessary arrangements so that everything you own, or “estate”, will go to the right people when you die. An estate may include land properties, vehicles, bank accounts, investments and insurance, furniture, jewelry and other items of value.
So, why is estate planning important?
- Your estate will never go to unintended beneficiaries
Naming your beneficiaries ensures that they will be the only ones who will enjoy what you leave behind. - You ensure your family’s way of life
Estate planning, through investments and insurance, provides a financial buffer so your family can continue living as intended. - You minimize taxes for beneficiaries
By law, your beneficiaries must pay a considerable amount in taxes before they can receive their inheritance. Through estate planning, this cost can be minimized significantly. - You eliminate family disputes
Naming beneficiaries and specifying their inheritance can minimize disagreements between family and relatives. - You enjoy peace of mind
Having a plan in place means you can sleep at night knowing the future of your loved ones is safe and secure.
Estate planning can be a complex and tedious process so it would be best to have another person help you along. That person could be a hired lawyer, a professional financial advisor or a trusted friend who can help with the planning, documentation and fulfillment of your will.
If you’d like, we at Manulife Philippines can sit down with you to tailor-fit a plan for the management of your estate. And yes, a Manulife Advisor is just seconds away at (02) 884-7000 or you can reach us here.
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