© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - What is Estate Planning And Why Is It Critical For Property Owners
Posted 20th September 2020

What is Estate Planning And Why Is It Critical For Property Owners

Estate planning is essentially critical for those who are property owners in their later years, and there’s some good reasons for that classification too. Here’s why estate planning is critical for property owners.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

What is Estate Planning And Why Is It Critical For Property Owners
estate

Planning for the future of your estate can be a complicated process, especially if you own a lot of assets or property. The various options as far as distribution of your assets and how to go about creating the necessary legal structures and documentation to ensure this gets handled can be a real pain too. 

No one enjoys looking forward to death and the estate planning that goes along with handling the proceedings thereof, but it’s the responsible thing to do. Failing to plan for your own passing, whether you’re married or single, can be something that comes to the detriment of your family as a result of insufficient preparation. 

Planning for your estate is a very important part of making not only the grieving process easier, but of staying out of the courthouse too. The clearer and more concise your estate plan is, the less legal mediation needed, and the less stress on everyone involved. 

Estate planning is essentially critical for those who are property owners in their later years, and there’s some good reasons for that classification too. Here’s why estate planning is critical for property owners:

 

Stress Reduction Via Preparedness

Why is it important to have an estate plan? While it’s true that the law does not require you to have one, having an already drawn-out estate plan can take a great amount of stress and responsibility off of your heirs after your passing, or potentially yours as well if you end up scrambling to prepare one in your later years.

Leaving your children and grandchildren, or other branches of the family tree as well, to decipher what to do with what, who to give this, who gets this money, and so on and so forth, can be a tiring process that your family wouldn’t otherwise have to deal with had it been prepared already with your estate planner.

Things like this can also cause family disputes and break bonds too. This is especially true for property owners, because your estate is likely to have a higher value than that of a non-property owner, and the liquidity that may come from this is something that can present a problem if it hasn’t been designated previously. Disagreements over money are one of the most common arguments to come between families, and something you’ll want to avoid at all costs. 

 

Minimizing Your Family’s Tax Liability

Having a set of plans for your family or for yourself can help minimize your tax liability and protect your assets from any possible litigation that may occur when your assets become too large for you. If you’re someone who doesn’t spend much time thinking about their own estate, you may not understand just how important it is to have a plan for any corresponding or relevant taxes.

Now, not all estates are going to be subject to taxes of course. Traditionally, unless your estate is valued at more than USD$11 million, you won’t be subject to any federal taxes. States on the other hand, adopt their own individual taxation levels for estates, so it’s important to research this as a property owner. If you take the time to look into which states have inheritance tax and what exactly you may be subject to, you’ll be far less likely to make decisions that could potentially damage or even eliminate your chances at financial security.

 

Setting Your Family Up For The Future

If you’re reading this as a property owner, you’ve probably got some assets behind your name. This will all go to someone, and depending upon how much property you own, it can end up being life-changing for your family and their future. This all comes down to your ability to plan accordingly, though.

Having a decent sized estate doesn’t help as much if you fail to plan for the taxes that may come by taking advantages of certain tax breaks such as giving monetary gifts, setting up a trust, or maybe even financing a startup business that has the potential to become profitable in the legal form of a family limited partnership. The options are abundant.

You want to make sure your heirs reap the most benefits possible from your passing, including the wealth you’ve built throughout your life and the liquidity found in the values of your property. This may even mean selling off some early and taking the tax hit yourself, reinvesting it into a tax advantaged account, or finding some other means of keeping the burden off of your children and grandchildren. 

 

Mitigation Of Debt And Financial Obligations

When you pass away and your assets or financial accounts are passed down to your heirs, any outstanding debts cannot be collected from that inheritance. However, they can most definitely be collected from your estate value if necessary, which comes before your heirs get their inheritance from it.

Leaving outstanding balances on properties or other loans can leave your heirs in a conundrum when it comes to figuring out how to execute your estate. What needs to be paid? When will they take it? Is there enough in the bank account? Will they need to sell the house? All of these unanswerable questions may come up at first when outstanding debts arise. 

How to go about ridding yourself of these financial burdens and how they’ll be paid off from your estate value are some of the biggest decisions that you’ll have to make. Having a good estate plan though will allow your loved ones to deal with the situation more easily, while ensuring that you receive the proper financial support that you’ll need to pay your mortgage, medical bills, and other essentials over the long run. 

 

Summing Up

As you shift into the latter stages of your life, you may begin to realize that it’s no longer so much about you as much as it is about those you’re leaving behind. Having an estate plan for your property is best for all of them, and sets them up well for the future. 

Taking the time to make this plan is something that they’ll undoubtedly appreciate when that tough day comes, and something that can potentially benefit them for generations.

Categories: Finance, Legal


You Might Also Like
Read Full PostRead - Eye Icon
Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce
News
27/07/2022Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce

Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce The workforce is undergoing tremendous change. Rapid digitization and automation are giving rise to new workforce challenges. The shelf life of the skillset has already been reduced

Read Full PostRead - Eye Icon
How to Maximise Business Opportunities with AI and Automation
Innovation
24/05/2023How to Maximise Business Opportunities with AI and Automation

Whether it be for operational heavy lifting or data management and analysis, AI and automation tools have the power to transform UK businesses.

Read Full PostRead - Eye Icon
Building Trust in Digital Securities: Insurance’s Time To Step Up
News
10/02/2020Building Trust in Digital Securities: Insurance’s Time To Step Up

Assurely’s Co-Founder and Chief Insurance Officer, Ty Sagalow shares his views about the role insurance can play to advance digital securities.

Read Full PostRead - Eye Icon
The Secret to Success? Find a Trusted Business Advisor
News
08/09/2023The Secret to Success? Find a Trusted Business Advisor

Starting a business is a bit like hiking up a mountain blindfolded – it’s difficult, disorienting, and you never know what unexpected cliffs or pitfalls await around the next bend. The stakes feel high, and one wrong step can send you tumbling. But

Read Full PostRead - Eye Icon
Most Trusted for High-Value Transactions in the Caribbean
Strategy
29/06/2016Most Trusted for High-Value Transactions in the Caribbean

Emmanuel Jacques Almosnino is well renowned law firm, comprised of highly skilled international attorneys involved with tax, financing, real property and wealth management.

Read Full PostRead - Eye Icon
The Irish Insurance Industry
Finance
03/03/2016The Irish Insurance Industry

JP Healy & Co Insurance’s ltd is an insurance brokerage based in Ireland that has been operating for over 30 years.

Read Full PostRead - Eye Icon
EXPEN International Tech Transactions Advisory of the Year 2017
Innovation
01/08/2017EXPEN International Tech Transactions Advisory of the Year 2017

EXPEN International Tech Transactions Advisory of the Year 2017

Read Full PostRead - Eye Icon
Securing a Changing Digital World
M&A
22/10/2021Securing a Changing Digital World

In such a dynamic and changeable world as cybersecurity and cyberthreat, it takes a company that is able to adapt in an efficient and sophisticated manner in order to keep up. Resecurity is a company expert at doing this, working on keeping itself competitive

Read Full PostRead - Eye Icon
Dell to Acquire EMC in Biggest Tech Deal of All Time
M&A
16/10/2015Dell to Acquire EMC in Biggest Tech Deal of All Time

Dell has agreed to acquire EMC for $67 billion or £33.15 a share, by far the biggest technology deal of all time.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow