What Is The Importance Of Estate Planning

Wealth advice is a broader concept, since it includes not only the financial branch, but also the tax and legal branches. Furthermore, it should not focus only on financial assets, but also on the rest of the assets that make up our clients ‘ assets, such as real estate or business assets. The main objective of estate planning is to help our clients put their assets in the context of their economic and family situation, to adapt to the objectives and expectations of each of the people. Therefore, we have to try to get a tailored suit that is tailored to the vital goals of our clients, taking into account all these circumstances.

On many occasions we do not consider what our vital objectives are, because it is difficult for us to think in the long term. However, good wealth advice is one that looks at high beams rather than low beams.


We have a very clear example with inheritance planning. Dying is something that worries us all, but we never find the time to reflect on how we want to transmit our heritage to our heirs.

If I close my eyes, and leave the distribution of the inheritance to a good understanding between the heirs, we can contribute so that the future relationship between our loved ones is not as good as we would like. In short, if we do not decide in life how to distribute our assets, the Law will do it for us, and it will certainly not be the best option from a family and fiscal point of view. We have some great estate planning tools that we should all know about, such as the possibility of making a good will, contracting investment funds with a tax deferral regime that can be converted into direct savings, certain life insurance or the possibility for entrepreneurs and freelancers to apply the family business regime.


Planning retirement

We have another example with retirement planning. As we get closer to our professional retirement, it is important to have a moment of reflection, review the assets achieved during our active stage and rethink our vital objectives. We have to do like Napoleon, climb a watchtower to distance ourselves, and plan our future. The sooner we do this “Napoleonic” exercise in reflection, the better we can plan for the future and the easier it will be to meet our vital goals.

At the age of 65, we are open to tax “windows of opportunity” that we should take into account as soon as possible, so that we do not have to regret having read articles like this late. In addition to the well-known 40% reduction in the redemption of Pension Plans, there are other interesting tax advantages, such as exemption from capital gains in the event of the sale of the main home or in the event of reinvestment in income insurance life. The people at final security can help you with that kind of planning so contact them today!

Another moment that requires good estate planning is when you want to help your children buy their first home, or start a business project. You can consider making a donation to them, but always after having carried out a patrimonial analysis of what you come to stay after the donation so as not to compromise your patrimony, the costs and tax savings that it entails or having thought control mechanisms so that your children do not waste donated goods. Life expectancy is getting longer and longer, and after retirement, the sources of income are considerably reduced, since we cannot count on the income from work to which we were used.

Therefore, I will have to consider what assets I need to maintain my standard of living, if these assets generated recurring income and if it is more advisable to make a donation, a loan, or if I prefer to enjoy them all my life and receive them after death. .


Dilemma between donating or inheriting

One of the main differences between donating or inheriting an asset is that the capital gain is generated in the donor’s personal income tax in the case of donations, it is not taxed in the case of inheritance, it is what is called the “capital gain of the deceased”. Therefore, the existence of significant capital gains in the goods that are being donated is one of the basic aspects to analyze before starting to make donations.

However, in this life it is not all taxes, and there are times when it is preferable not to maximize tax savings for the sake of future family peace.