Providing for future generations

We’d all like to leave a legacy and provide for those closest and dearest to us once we’re gone. Estate planning is an effective method to take an overview of your assets, consider how they’re structured and how you’d like them to be distributed after you die. It’s just as important to provide for yourself as it is for the future.

Reviewing your Will

A will sets out how you want your estate to be managed and distributed after your death. It can also include the appointment of a guardian for your children. Without a will, management of your estate can be costly, time consuming and distributed according to state based legislation. It’s important to have a valid will and to review it regularly to make sure it is still in line with your intentions. While they may be effective for simple straight-forward estates, they don’t serve more complex estates as effectively. And a will with even a small flaw may lead to an expensive process if it is contested or it doesn’t have a residue clause which directs how to distribute assets not included in the original will.

Granting an Enduring Power of Attorney

If you were to become incapable of handling your affairs, control of your assets could revert to a person appointed by a court. It would be more useful if you had an enduring power of attorney set up now so that if you cannot manage your affairs, someone you trust and have chosen to act for you, can make the important decisions affecting you and your affairs.

Selecting an Executor

An executor distributes your assets after your death. This involves applying to the Supreme Court for probate, which gives them permission to execute your will. It can be a difficult job if your will involves setting up trusts and lodging tax returns and you should ensure they are willing and that you have nominated an alternate as a back-up in case they pass away before you do or change their mind. You should consider appointing your solicitor or using a trustee company.

Giving Guardianship

A guardian can make decisions regarding where you live and your medical care if you lose the capacity to make your own decisions. It’s important to select someone you trust as soon as any signs appear that you may need these decisions made for you.

Considering a family trust

A family trust, also known as a discretionary trust, is a common structure used by small businesses to share the business’ income in the most tax-effective way among beneficiaries within the family group and to protect family assets. It is most useful where the business is generating income and experiencing growth. It involves setting up a trust with a nominated trustee, who has responsibility for distributing the estate to your nominated beneficiaries. It can also be used to protect assets from dependants’ creditors or if a dependant can’t manage money.

The importance of super and insurance

The death benefit is usually paid to your nominated beneficiaries. The superannuation balance is transferred into the Cash option on notification of your death. The balance will be paid depending on who you have nominated as beneficiaries.

Who can be my beneficiary inside super?

If you are insuring through your superannuation, you need to understand the difference between binding and non-binding beneficiaries and issues to be aware of. If you have insurance outside of superannuation, you can nominate anyone to be a beneficiary. The best way to look after your family’s future is to ensure you have enough insurance cover. It’s also important to be aware of the tax implications of super and estate planning.

If you’ve moved into the pension phase of super, it’s important you have your estate planning nominations set up correctly here too. Like super, what happens to your pension is not determined by your Will. Tax implications can also apply here too for beneficiaries.

How can we help you with estate planning advice?

Your financial plan should not only consider the needs of your life, but the wishes for your wealth after your life.

We will ensure that all aspects of your financial situation are addressed to ensure you have:

• the right insurance cover in place, with consideration to tax too.
• a succession plan in place if you’re a business owner.
• the appropriate superannuation or pension nominations completed, as these are not covered by your Will.
• sought appropriate legal advice, we can work with your advice provider in more complex situations.

To make an appointment, call us on 03 9038 9449 (Melbourne) or 08 8461 9191 (Adelaide) during business hours. Alternatively, complete the contact form and a member of our team will reach out to you to make an appointment for you. We can meet face to face in our offices, and in capital cities. Video meetings are also available.