We all know that we have to plan for the future of our estates, but everybody seems to be putting it off all the time. Admittedly, thinking about your own death can be terrifying. You also have to face some loved ones who won’t like how you split your assets. It adds more anxiety to the process. Nevertheless, planning your wills and estates in Queensland (QLD) will give you comfort and save your loved ones from plenty of headaches.
1. On Income Tax
The most common misunderstanding when it comes to estate planning is that recipients don’t have to settle income tax on the money inherited. This is only true for cash in retirement plans that are tax-deferred.
2. On Whom to Leave Assets To
Planning your estate will be solely your decision. Just because others leave assets to their kids, doesn’t mean you have to as well. Though the least you can do is to include them in your list. This way, it doesn’t look like you unintentionally forget to include them.
3. On How Easy It Is
Unlike what you probably imagine, writing a will is quite easy. You’ll only need a reliable software programme or a DIY book. Just list down the names of your loved ones and the properties they are going to inherit. Afterward, all you need to do is sign it in front of witnesses. You don’t have to file it as long as you store it in a safe place.
4. On How Much of Your Assets Are Covered
Most of your valuable assets, including jointly-owned cars or real estate, retirement accounts and life insurance proceeds, probably won’t go through your will. Ensure that you specify the individuals who will inherit your assets.
5. On Your Retirement Fund
When it comes to your retirement plan, your spouse automatically has the legitimate right to receive the cash in your 401(k) plan. However, you can give it up in writing.
If you still aren’t done planning what happens to your estate after you die, rely on the tips listed here to make the process less daunting. Your family will thank you for it.