Understanding Estate Planning

It is important to understand the magnitude of estate planning. Estate planning not only includes preparing a Will for when you die, but also other documents to help ensure your affairs are in order when you die or are unable to look after them yourself.

Delivering Certainty Service Offering - Estate Planning

Delivering Certainty have subscribed to an estate planning software package which provides our clients with a personalised report to help them to implement an estate plan. The purpose of this program is not to give advice but more to assist our clients with education in this area, to highlight the specific weaknesses in their current arrangements and to give them the confidence to commit to the estate planning process.

Wills

A Will is a critical aspect of any estate plan. Although most people understand how a Will operates not everyone has one, and many Wills are not regularly reviewed or kept up to date.

A Will is a legal document that states your wishes on how you want your assets, including financial and personal effects, to be distributed when you die.

A Will can help to diffuse potential disagreements that may arise following your death. Surviving family members/associates may dispute the ownership and distribution of assets. Although a Will can be contested, your final wishes will be known and this may resolve any disagreements that may arise. 

We recommend that you consult a lawyer or professional trustee company to draw up the Will for you. Some questions you should ask or consider include:

          >> What happens if you and your partner die simultaneously?

          >> Who will be the legal guardian of your children if you die? 

          >> Do you want any assets to be given as specific items, or are you happy for everything to be sold and the cash distributed? 

          >> Have you thought that your assets may have different values when you die or may not be available? 

          >> Did you know that capital gains tax may apply on the sale of certain assets? 

          >> Have you considered that assets like superannuation and joint assets do not normally form a part of your estate and may impact on how equally your estate is divided? 

          >> Who will be the executor of your Will?

The executor is responsible for carrying out your wishes as expressed in your Will. The person you select must be capable of not only performing the role but also working with competent specialists. The administration of an estate can be time consuming and is likely to need investment, taxation, accounting and legal advice.

Assets not included in your Will

The distribution of assets can usually be determined by a Will, however there are a few exceptions:

           - Jointly owned assets (held in joint tenancy) are passed directly to the surviving owner(s)

           - Superannuation benefits may pass directly to an individual under a binding nomination or via trustee discretion

           - Income streams (such as account-based pensions) may continue to a reversionary pensioner or pass directly to an individual under a binding nomination or via trustee discretion, or

            - Insurance proceeds may pass directly to a nominated beneficiary.

            - Trusts assets are also not included in your estate however care should be taken with trusts as the continued control of the trust needs to be considered in the estate planning conversations. 


Other important considerations when planning your Estate

          + The establishment of Powers of Attorney.

          + The nomination of guardianship for any dependent children.

          + Any Expression of Wish regarding funeral arrangements, choice of school for children etc to act as a guide for executors, guardians and trustees.

          + Creation of Testamentary Trusts, where appropriate, which can have additional tax and asset protection benefits.