Getting your will in order is normally not something most of us really think about, however it is an important part of life regardless of your age and especially if you have a variety of assets and investments.
Careful estate planning can help safeguard the assets you have built and ensure that they are transferred effortlessly, in the most tax-effective manner and most importantly, according to your wishes when the worst-case scenario occurs.
An estate plan outlines how you want your assets to be dealt with in the event of your death, and also contains your will. It includes documents that rule how you will be cared for, medically and financially, if you become unable to make your own decisions in the future.
Estate planning is an important part of your overall financial plan and it is something that shouldn’t be left until it’s too late. We don’t know what is going to happen in the future.
Factors to consider:
Will - Your will is the document that directs how your estate/assets will be distributed amongst your nominated beneficiaries. It is important to consider any assets that you personally own as well as any jointly owned assets with another person if that person dies before you. Your family home may be an example of property you own jointly with another. Any assets that you may personally inherit in the future should also be considered.
Superannuation – What happens to your super balance or super pension if something happens to you? It is important that it be considered as part of your overall estate planning. Your super is not normally dealt with as part of your estate. Another thing to be aware of is if you leave it to your adult children, who are not financially dependent on you, they will potentially be hit with taxes on the amount received.
Testamentary trust – a Testamentary Trust is a trust created for your Will and may have some noteworthy advantages. There are a few different types of testamentary trusts, and some of these include discretionary trusts and special disability trusts. A Testamentary trust will help you to administer your estate to your beneficiaries more efficient and tax friendly manner. It may also reduce the possibility of a successful challenge to your Will.
Power of Attorney – Appointing a power of attorney gives them the legal authority to look after your financial affairs on your behalf. You may want to appoint one if you don’t wish to manage your own affairs, or you want to take away the burden on family members.
With families in today’s society becoming more complicated, estate planning has become even more important and involves a lot more than a basic will. It can be a complex area and it is recommended that you seek professional advice to assist to help you with putting your estate plan into place once you have considered your options.
Azure Group Wealth is on hand to answer any questions you may have about your own estate planning – contact us at ourteam@azuregroup.com.au to arrange a conversation with one of our Wealth Experts.
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