Estate planning is a means of ensuring that your estate is passed on, as set down in your Will, in the most efficient and tax effective way possible.
It helps to establish your current financial situation, decide what you want to happen in the event of your death and make appropriate legal and financial arrangements.
It is also a means of helping you to get the most use and enjoyment from your assets while you are still alive, while at the same time being safe in the knowledge that you are providing for your beneficiaries and that after you die your assets will be distributed in the way you intended.
Important Factors to Consider
The benefits of having a plan will vary with your financial situation. For those who have funds in superannuation and/or other investments, a well-prepared plan can maximise the number of assets that can be passed on after death.
While estate planning is primarily about the assets you wish to pass onto family members, it can also be about debts, including capital losses, that you do not wish to pass on.
Specific factors to be taken into account include:
- Your estates net worth.
- Amount of outstanding debts or liabilities.
- Whether there will be sufficient funds to ensure all members of the family are treated fairly.
- Whether you have a Will or trust in place and the date on which it was last reviewed.
Good estate planning then should include:
- Using an Enduring Power of Attorney where necessary.
- Having adequate and current insurance policies.
- Having an updated Will or Trust to ensure that your partner and your family are adequately provided for (Note: If you die without a Will or if your Will is declared invalid, your estate may be distributed by a court-appointed administrator according to State laws).
- Be reviewed and updated on a regular basis.