Why You Need to Consider Estate Planning
Estate planning might not be something you’ve considered. Perhaps because you’re still young and healthy, or you don’t yet have a family, or it’s just something you’d rather not think about.
After all, it can be uncomfortable contemplating what might eventually happen to the wealth and possessions you’ve accumulated in life and how they might be passed on, but it’s not something you should leave to chance.
The importance of Estate planning is to determine how you pass on your wealth and to maximise the benefits that remain. Everyone over the age of 18 who owns assets should have an effective will in place to make sure those assets are distributed in the manner they choose to the people they want to have benefit from them.
What you spend on estate planning now could ultimately save your estate thousands of dollars, while also giving you added peace of mind.
You may have considered drawing up a will, but you may not have considered some of the other documents available to ensure your wishes are carried out as you intended.
What is a Will?
A will is a legal document that lets you choose who should benefit from your estate, as well as the person most suitable to administer your will in accordance with your wishes.
Including a testamentary trust in your will gives your beneficiaries the opportunity to not only their inheritance, but also minimise tax on income earned from their inheritance.
A testamentary trust is not for everyone. Estate planning advice is essential in this case to ensure this option is suitable for your needs.
Enduring Powers of Attorney
Regardless of your age, if you own assets an enduring power of attorney should be in place so in the event of unexpected incapacity, a person you trust is empowered to step into your shoes and manage your assets on your behalf.
A power of attorney can be prepared for you either as part of an estate planning package or as an individual document.
Appointment of Enduring Guardians / Medical Attorney
Do you realise that if you are incapacitated and unable to make your own medical or lifestyle decisions, those closest to you may be powerless to control what medical treatment you have, how you are cared for, and where you are accommodated?
When you appoint someone you trust as enduring guardian, you protect yourself from decisions being made on your behalf by those who don’t know you or your preferences.
When someone dies, often their loved ones don’t know where to start or what to do.
An experienced estate administration professional can ensure the estate is administered sympathetically, efficiently and as inexpensively as possible.
Reduce the additional stress and worry from your loved ones by making sure they have clear direction in the event of your passing or incapacitation. Talk to us about creating the appropriate documentation to protect your estate and your rights.
Owl Financial Management ( OwlFM ) is an Adelaide Based Financial Planning business.
Legal & Estate Planning Services