Many people think estate planning is only for the very wealthy or for those who have complicated business structures or tax issues. Estate planning is relevant for most people who have assets. An estate plan can also be useful throughout various stages of life.
What is estate planning?
Not all assets are controlled by a will. A will can only address Estate assets. An Estate Plan ensures that the ownership and control of all of your assets passes to your beneficiaries. It is more than just a will. An Estate Plan will make sure your beneficiaries receive what they are entiteld to and make the transition of assets as smooth as possible. A proper Estate Plan will minimise tax and capital gains penalties that might otherwise be imposed on the beneficiary.
An Estate Plan will help relieve issues if you are concerned about what happens to your estate once they have been passed on to the beneficiary. For example, it can protect the assets if there are concerns that children or in-laws may use funds in ways that are not in line with your wishes or where beneficiaries may be experiencing divorce or bankruptcy.
Many people are surprised by how their estate could be used in ways that are not in line with their wishes.
Consider:
- Do you have appropriate life insurance to fund dependants and beneficiaries needs?
- Are your assets protected in the case of one of your beneficiaries becoming divorced after your death?
- Do you need to provide for a child with a disability?
- Do you have children who may spend money intended for other purposes, such as education of a grandchild?
- Can you make a binding nomination through your super fund?
- What do you want to happen to your assets if your spouse re-marries after your death?
A little planning can make sure your assets are used in ways that are consistent with your wishes.
A financial adviser can help create an Estate Plan that takes into account your unique situation.
An Estate Plan is based around a will but addresses broader issues such as taxation that involve additional professional advice.
Your financial adviser will typically use other specialists such as a solicitor and an accountant to help with these aspects of the Estate Plan. By using professional advice on tax and legal issues, your beneficiaries can gain the greatest benefits from your estate. Not only can this plan give you peace of mind now, but an effective estate plan can make it easier for your executors and beneficiaries after your death.
Estate Planning is important. At Apex Partners we welcome the opportunity to talk to you about ways we can assist you and your finanical situation. Call us on 1300 856 338 to arrange a free, no obligation appointment.