Estate planning and documenting your future.
Estate planning for the living! What is Estate planning?
Many of us go through life not thinking about the end.
Many often think “Do I need a will“? Many don’t bother! We start life naked with nothing and we end up leaving an imprint on this earth that others must follow. Telling others how you want what you have accumulated in life is important to support your loved ones.
Wills establish wishes after death and are essential for estate planning
The chances are that you may have wishes about who gets the large loot of assets and possessions. These assets you have accumulated in your lifetime. Or you may have a young family and provision needs to be made to provide for their welfare and education.
No matter what your situation is you need a plan! A plan to look after your loved ones.
Start planning now for your estate wishes. Why is estate planning important!
Leaving this earth without instructions to your executor can mean that you will leave headaches for others. Do I need a will? YES, take time to consider what instructions you would leave for things such as :
- Your business – what is your desire, and are others capable of taking it over?
- Your car
- Your children and wife from the first or second marriage? – What is fair for estate planning in a second marriage?
- If you die with young kids, who will look after them?
- How will you deal with your superannuation?
- Who gets what?
- Are their taxes and capital gains tax to be addressed?
- Are there any favourite charities that are important to you?
- Have you documented your life achievements?
- Passwords for eBay, Facebook and Instagram?
Leaving a will allows those you love to be financially rewarded or cared for. A Will that has been created well will address issues of taxation and division of property. Estate planning Vs a Will – a Will is part of estate planning – Estate planning includes considering all of the above and taxation matters and how best to deal with assets.
No will – don’t leave a problem to someone else.
Not leaving a Will can result in an executor being appointed who must follow the standard formula for those without a will. When a person dies without leaving a valid will, their property and other assets are distributed according to specific rules, known as the rules of intestacy. A person who dies without leaving a will is classified as an intestate person. You may need to apply for probate, and if this is the case, seek legal advice.
Many of our clients have businesses. If not addressed, a mess can be left, and on some occasions, any value in the business is wasted due to inaction after death. Discuss with us the benefits of having an emergency business action plan in place in the event of an accident, fire, death, or natural disaster.
Many fights start due to greed and expectations. Many of us will accumulate wealth during our lifetime, but it is your wish as to how it will be distributed. We encourage clients to tell others so it should not be something of a complete surprise. Eliminate those self-focused beneficiaries who think that they have a sense of entitlement by controlling the conversation about why you are living.
Control comes after death by appointing the right people to carry out your wishes. For those with a family trust, you will need to make provision for the Trustee, who is someone that you can trust and will be fair to all potential beneficiaries. Talk to your lawyer about these instructions.
Start early and give while you are able!
It can be beneficial to start distributing assets early before death and enjoy the process. Some assets, such as the property, will have tax and stamp duty implications for you if sold early or transferred not under a will. You can and may enjoy giving cash away (as long as you are not receiving any government benefits) and slowly depleting the estate.
If you have lent money to others, ensure it’s documented so that your estate can recover it if necessary or adjust the distribution among family if needed. Finally, there are those who hide money in the walls and the garden. Make sure you let someone know what to look for.
Here to help
Schedule a confidential appointment to explore some of our discussion points. Best wishes Geoff
