Estate Planning is more than just about having a Will. A good estate plan will involve reviewing and managing your complete financial affairs to ensure that if you pass away, your beneficiaries receive what you intended them to receive. A comprehensive estate plan can avoid many headaches for your family when you do pass away.
An effective estate plan can cover your financial, business, and tax arrangements, as well as your lifestyle needs, retirement plans, and any future events such as health scares. Making sure your estate can also be distributed tax effectively is something to keep in mind when reviewing your estate. Please find more information here on testamentary trust, which is one way you can structure your estate planning more tax effectively.
When reviewing your estate plan, several key areas should be considered, as they are crucial to its overall effectiveness.
- Non-Estate Assets: Review assets that may not form part of your estate (such as jointly owned properties, superannuation, or assets held in trusts) to ensure they are appropriately structured and distributed according to your wishes. These assets may not be dealt with under a Will if they are not appropriately considered and cannot be distributed as per your wishes.
- Superannuation Death Benefit Nominations: Ensure your superannuation benefits are directed to the correct beneficiaries in a tax-effective manner. This is typically done via a Binding Death Nomination, which needs to be accepted by your superfund to ensure it is valid. Please find more information on super and your estate here.
- Family Trust Deed: Review the terms of any family trusts, ensuring the deed reflects your current intentions and is up-to-date with any legal or regulatory changes. You can find more information here on why you should update your deed.
- Successor Director for Companies: If you are a company director, it is essential to review and nominate a Successor Director to ensure the continuity of business operations in the event of your incapacity or passing.
- Life Insurance Policies: Verify that your life insurance beneficiaries are appropriately nominated and aligned with your overall estate strategy.
- Enduring Powers of Attorney (EPA): Check that your appointed attorney still reflects your wishes and is best suited to manage your financial matters if you are unable to do so. You can find more information on this document and the EPG here.
- Enduring Power of Guardianship (EPG): Ensure your chosen guardian can manage your health and personal decisions should you be unable to.
- Advance Health Directive: Consider establishing an Advance Health Directive outlining your medical treatment preferences in the event that you cannot communicate your decisions. You can find more information on this here.
Please do not hesitate to contact us if you need advice or have any questions about your estate planning.
