The 3 Steps of Successful Estate Planning

Jenny Holt

There are a number of reasons proper estate planning is a critical component of leaving a legacy to those who are left behind, and in the Ukraine, taxation is at the forefront. With proper planning, the beneficiaries of an estate can have the maximum benefit without worrying about parting with a portion of their inheritance to the taxman. There are three steps of successful estate planning that allow beneficiaries to have the maximum benefit while still within the framework of the law.

Step 1: Appoint an Accredited Financial Advisor

A financial advisor that puts their customers first, provide an integral service when it comes to estate planning. They will guide their customers accordingly to choose products and services that will most benefit their beneficiaries. Many investments and long-term savings products offered through an accredited financial advisor allow the customers to appoint a beneficiary. Life cover also provides this option. The proceeds thereof are tax-free and are excluded from the estate. This is important for those who wish to leave a legacy.

Step 2: Appoint the Executor of the Estate

For Ukrainian seniors, estate planning is essential and the appointing of the right executor is a key element in proper financial planning. Appointing an executor is also an important step for those who wish to ensure a speedy resolution of the estate on their passing. By appointing a trusted family member as the executor, the deceased might save them some fees as far as estate duty is concerned. This could cause a lot of stress for the family member, especially if it’s a difficult estate and they don’t have any experience in estate resolutions. It also takes away their ability and time to grieve. It’s better to appoint an executor that has experience in estate resolution as the courts only grant a specific amount of time for it to be resolved before they appoint an executor of their own.

Step 3: Have a Valid Will Drawn Up

This step can be completed with an attorney or financial advisor, whether part of a corporate institution or independent. It’s important that relatives or loved ones have access to the copy of the last will and testament of the deceased. This is an integral part of estate planning, especially where the distribution of assets is concerned. It is also vital that the will is updated regularly to ensure the correct distribution of assets especially for those who have businesses or have gone through a divorce.

Estate duties and other fees can quickly add up if the correct products aren’t chosen. Ensure those debt items are fully covered by insurance in order for it not to eat into the estate. Balances that sit in savings and current accounts, especially those that exceed the allowable thresholds may form part of the estate duty. Rather move surplus funds that form part of the legacy to an account that allows the appointment of a beneficiary.