If someone dies without a will, it means he/she has died “intestate.” When this happens, the intestacy laws of the state where the deceased resides will determine how one’s property is distributed upon his/her death. This includes any bank accounts, securities, real estate, and other assets own at the time of death.
The laws of intestate succession vary greatly depending on whether the deceased is single or married, with or without children. In most cases, one’s property is distributed in split shares to their “heirs”, which could include surviving spouse, parents, siblings, aunts and uncles, nieces, nephews, and distant relatives. Generally, when no relatives can be found, the entire estate goes to the state or government.
Without proper wealth and succession planning, the distribution of inheritance could take about 2 to 5 years or more depending on the complexity of the case. Also, if there is a financial recession, this can significantly affect the value of the estates. For time-sensitive assets like stock holdings, the value might depreciate by the time legal ownership is transferred to the loved ones or beneficiaries.
As the saying goes, “You can’t take it with you when you die.” And unless you’re planning on being buried with all your worldly possessions, someone you leave behind after you die is going to inherit the property.
Inheritance is a legal issue that everyone faces, but six out of ten dies without a Will, needless to say a private Trust or a private Foundation. While inheritance laws serve to ensure that the surviving next of kins inherit from the deceased after their death but over the centuries many have brought their cases to the Family Court to fight for their interests. The ambiguity in expressing their wishes in a Will and insufficient portion received by family members had led to helter skelter scenarios.
The above affirms the importance of wealth management and estate planning; in this instance a Trust or Foundation states the assets, executors and beneficiaries, making it so much easier for one’s wealth to be distributed justly and seamlessly upon their death.
The truly wealthy understands that maintaining their fortune for generations is as important as actually earning it. The Chinese proverb says “wealth does not pass (survive) three generations”. Early planning is a part of the key to effective wealth management planning and able to counter this myth.
Labuan Private Foundation is the most effective solution for wealth and succession planning. It is a registered corporate body that is commonly used for private wealth management, business succession and asset preservation.
Since estate planning can be quite complicated, it may be wise to speak with the professionals to fully understand what may happen if you do not have any Trust or Foundation in place. QX Trust offers consultancy in private wealth and business succession planning, we offer affordable and quality service in return for some peace of mind.
Get started today by speaking to our QX Trust consultants and find out more at https://www.offshore-labuan.com/labuan-private-foundation/