Question

In your opinion, who needs estate planning? Justify your answer.

Answer 1

Estate planning refers to leaving the bequeth before or after death to the individuals a person wants to. People nearing retirement or not in good health need estate planning. Estate planning needs to be done carefully, as their are many factors to take into consideration:

• Whether the person wants to retain control of the property or wealth before he dies. This is important because an individual would not want to have non recourse in case property has been transferred.
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• The individuals whom he wants to transfer, i.e. wife, kids or friends
• The tax implications of the transfer should be taken into consideration, the gift ot transfer taxes that have to be paid.
• The will should be written out with the help of good legal advice so as to remove any issues later on.
• The forced hiership rules must be taken into consideration before making bequeths.