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What is a real estate plan? Why do you need it?

In our lives, we have the opportunity to put together a protection plan that benefits “our loved ones” when we are no longer there.

What does “real estate planning” mean?

“Planning is defined as the process of creating documentation and managing those assets and liabilities,” explains Stoch.

Real estate planning is designed to preserve and legally protect assets for the life of a person, making it effective to distribute assets to subsequent generations.

The purpose is to ensure that a loved one takes care of a person according to his or her specific wishes.

“Real estate planning is also about structuring assets and finances in a way that ensures sufficient liquidity of real estate.”

“In addition to managing the distribution of the inheritance aspect, it also ensures that the financial obligations are fulfilled without burdening the beneficiaries.”

how is it ‘Estate’ Is it defined?

“Lifetime assets and liabilities effectively define“ owning real estate, ”” said Daniel Stoch, Senior Risk Specialist at Discovery Life.

“These include bank accounts, investments, cars, homes, furniture, precious jewelery, works of art, and other personal belongings.”

“Almost every adult has property. Real estate is not defined by a certain amount of wealth. You can have a modest amount of assets or many components. Rather, it’s in your name. It’s defined by what you have, “he adds.

Who should consider creating a real estate plan?

Anyone who wants to transfer their property to one or more loved ones should consider a real estate plan.

“Real estate planning is especially important for those who are married or are married, have children, including children of various relationships, or have relatives who are financially dependent on them.” Says Stoch.

By making a real estate plan, you can build a legal process to best support your wishes.

Without these instructions, South African law will determine the distribution of your property and the heirs / beneficiaries.

This result can be very different from what you choose while you are alive.

By engaging in the real estate planning process, you can avoid the potential financial uncertainties and legal annoyances that can sometimes occur when real estate planning is not in place.

When should I start and what should I consider?

“The sooner you start a real estate plan, the better,” says Stoch.

“You don’t have to wait until the second half of your life, after you start a family or get an asset,” he adds.

“Start with what you have and can afford. Get married, have children, get divorced, get or sell property, get life insurance, start a business, earn income. If you lose or get sick, you can start updating your plan with just one adult. “

“Your plan can be expanded or changed depending on how your life unfolds. Any of these can occur and plan as your needs evolve or change. It can be adapted. Rather, for the first time, minimize the chances of your family being surprised and unprepared. “

Who needs to be involved in the real estate planning process?

“Ideally we need a team of experts,” says Stoch.

“Lawyers, accountants and financial advisers are the best people to get involved in this process.”

“Each expert applies his or her area of ​​expertise to make the right plans. Discovery has recently been Discovery Wills and Trust Service A company that provides the professional services needed to put together a sound real estate plan. “

“Services include making wills, appointing executors and trustees, managing the property of the deceased, managing a testamentary trust, and transferring property.”

“A new supplementary offer aimed at financing costs related to real estate liquidation Discovery Estate Preserver.. “

“This helps cover the costs of executors, testamentary trusts, attorney fees, and liquidity provision.”

When should the real estate plan be revised?

“There is flexibility when making a real estate plan. That’s why it’s important that you don’t have the idea that you can make a real estate plan only once. Therefore, you need to put it together much later in your life.”

“You can change your intent and purpose at any time, even if there are no significant life events,” says Stoch.

Stoch proposes to “plan once a year to revise the plan, even in the event of major changes or legislative changes that affect real estate planning.”

He concludes, “We need to consider real estate planning as a safeguard to preserve the legacy and ensure the financial security of our loved ones.”

Talk to your financial adviser today about your overall real estate plan with Discovery life.

This article does not constitute financial advice. Discovery Life Limited. Registration number 1966/003901/06 is a licensed insurance company, licensed financial services and registered credit provider, NCR registration number NCRCP3555. Product rules and contract terms apply.

Discovery Wills and Trust Services is a division of Discovery Central Services (Pty) Limited, registered in South Africa with registration number 2016/054628/07 and is part of the Discovery Group’s enterprises. Discovery Life Limited. Registration number 1966/003901/06 is a licensed insurance company, licensed financial services and registered credit provider, NCR registration number NCRCP3555.

Discovery Vitality (Pty) Ltd. Registration number: 1999/007736/07. Terms of use and restrictions apply.

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What is a real estate plan? Why do you need it?

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