Estate planning is one of those topics many investors tend to avoid, not because it isn’t important but because it feels uncomfortable and “far off”. In Jamaica, it is very common for people to focus heavily on building wealth through property, businesses, stocks and bonds, while overlooking what happens to those assets if something unexpected occurs. The truth is, estate planning is not only for the wealthy, and it is not something to “deal with later”. It is a core part of financial planning, and one of the most responsible decisions you can make for your family.

Most investors approach financial planning with the goals of growing and protecting wealth. However, estate planning is often overlooked because people assume their assets will automatically pass to their spouse or children. Others avoid it because discussions around death feel uncomfortable, and some believe estate planning is complicated or expensive. Unfortunately, ignoring this area can create serious consequences, especially in Jamaica where settling an estate without proper planning can take time, cost money, and create unnecessary stress for loved ones. Many investors spend decades building wealth, only for that wealth to become tied up in legal processes when their families need support the most.

Many persons believe estate planning simply means writing a will. While having a will is critical, comprehensive estate planning goes beyond that. It is the overall process of deciding how your assets will be managed and transferred if you die or become incapacitated and are unable to manage your own affairs. A proper estate plan helps ensure your wishes are clearly documented, your beneficiaries are properly protected, and your family has guidance during a difficult time. Without planning, confusion and conflict can arise when multiple relatives believe they have rights to the same assets.

In Jamaica, if someone dies without a will (intestate), the estate is distributed according to Jamaican laws. This can lead to outcomes that may not reflect what the person truly intended and even where a will exists, the process may still require probate, which can take time. During that period, bank accounts and investment assets can be restricted, and families may find themselves struggling financially. This is one of the most frustrating realities as the assets exist, but beneficiaries cannot access them when they need them the most.

This is why liquidity planning is an important part of estate planning. Families often need cash quickly after a death to cover funeral expenses, household bills, and day-to-day obligations. If most of a person’s wealth is tied up in long-term investments or property, loved ones may be forced to sell assets quickly or borrow funds to get through the period. A well-structured estate plan avoids this situation by ensuring there is a practical system in place for loved ones to access funds quickly and maintain stability.

Joint accounts or investments held under the Right of Survivorship are an often overlooked but effective estate planning tool. They allow ownership to automatically transfer to the surviving joint holder, providing faster access to funds since the asset may not need to go through probate. This can also improve estate efficiency by reducing delays, administrative steps, and costs, and can reduce exposure to transfer taxes and fees, allowing more wealth to pass smoothly to loved ones. However, survivorship arrangements must be structured carefully to ensure the joint holder is the intended beneficiary and the setup aligns with the overall estate plan, especially when multiple beneficiaries are involved.

Ultimately, estate planning is not something you do when you get older; it is something you do when you have something worth protecting. If you have a family, own property, a business, or investments, then estate planning must be part of your financial plan. As investors, we spend a lot of time discussing interest rates, yields, portfolio diversification, and returns. But we must also ask the bigger question: If something happens to me, will my family be protected and able to access what I have built without unnecessary delays and costs? That is what estate planning solves and why it deserves just as much attention as growing your portfolio.

Dwayne Neil, MBA, is the AVP, Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at info@sterlingasset.net.jm.

Dwayne Neil.