Estate Planning
Estate Planning is about creating a strategy and plan on how to deal with the wealth you have accumulated through hard work and sacrifice. When the time comes for it to pass down to your children and children’s children, you must ensure it is protected.
Family wealth can be vulnerable and open to attack by bad actors, lawyers, agencies, regulators and the government. This can become especially crucial in the event of a death of one of the family members.
How do you prevent adverse outcomes?
In two parts:
- Minimising the size of the estate, and
- having a clear line of succession.
Many people have a considerable amount of assets that are excluded from the estate and the will. This can include:
- Family trust assets
- Jointly owned assets
- Company assets
- Superannuation
- Life insurance
As the above assets are typically not dealt with via a will, it is important that there is a clear line of succession on who takes control of these assets and to ensure its fair distribution.
Your Will
Applying to your assets that are in your personal name, the purpose of your will is to outline your wishes for when you pass away. It also determines who will receive your assets, allowing you to make specific bequests and leave certain items for family members.
Due to the size of potential estates, wills are more likely to be contested than they would have previously been in the past. This makes it more important than ever to protect your estate assets.
A comprehensive estate plan typically includes a variety of different legal documents and strategies. These are designed to protect your assets, minimise taxes, and ensure that your wishes are carried out in the event of your incapacity or death.
Some of the key components of a comprehensive estate plan may include:
A Last Will and Testament: This document lays out your instructions for how you want your assets distributed after you die.
A Trust: A trust can be used to manage and distribute assets both during your lifetime and after your death.
Power of Attorney: This document allows you to appoint someone to manage your financial affairs in the event that you become incapacitated.
Advance Directive: This document lays out your instructions for end-of-life medical care.
An Asset Protection Plan: This plan protects your assets from creditors and lawsuits.
A Tax Plan: This plan is designed to minimise the taxes that your estate will owe.
Beneficiary designations: Beneficiary designations are used to direct the distribution of assets in certain accounts, such as life insurance policies and retirement accounts.
A Family Limited Partnership: This is a legal entity that can be used to transfer assets to your
beneficiaries in a tax-efficient manner.
Charitable giving: A plan for charitable giving can be included in an estate plan to provide for
charitable causes and organisations that you care about.
It is important to work with an experienced estate planning attorney to create a comprehensive estate plan that takes into account your unique circumstances and goals.
