Question

list and explain three reasons why it is important to execute an estate plan

Answer 1

Estate planning is very important in todays world when there are different tax laws that are applicable at different property and after the death it can become difficult to divide the property so having a proper estate plan and executing it is very important.

· The estate plan can make it easy to as to how the property will b allocated to different members of the family, whether some asset has to be allocated to any endowment fund or not.

· Execution of estate plan also makes it easier the tax base or the tax amount which would be payable to the government, as different rate of tax is applicable for different people receiving the property.

· If a estate plan is properly prepared and executed then it can save the time and cost of probate.