Understanding the Basics of
Estate Planning

Estate planning is a crucial process that involves preparing for the management and distribution of your estate after your death. It ensures that your assets are distributed according to your wishes, minimises potential disputes, and can help reduce inheritance tax liabilities. Key components of estate planning include creating a will, setting up trusts, and establishing lasting powers of attorney.

A will is a legal document that outlines how your assets should be distributed after your death. Without a will, the rules of intestacy will determine how your estate is divided, which may not align with your wishes. Trusts are legal arrangements that allow you to transfer assets to a trustee for the benefit of your beneficiaries. They can be used to manage and protect assets, provide for minor children, or reduce tax liabilities.

Lasting powers of attorney (LPA) are legal documents that allow you to appoint someone to make decisions on your behalf if you become incapacitated. There are two types of LPA: one for property and financial affairs and another for health and welfare. Both are essential to ensure that your wishes are respected if you can no longer make decisions for yourself.

Overall, estate planning provides peace of mind that your affairs will be handled according to your wishes and can help protect your loved ones from unnecessary stress and financial burdens.