Why do I need to start thinking about estate planning?
Estate planning might seem like something you don’t need to worry about until later in life. With career goals, relationships and travel plans taking priority, thinking about a Will or Power of Attorney might feel irrelevant.
But the reality is that having an estate plan isn’t just about what happens when you’re older – it’s also about protecting yourself now.
From ensuring your finances are managed if something happens to you, to deciding who gets your assets, an estate plan gives you control over your future if the unexpected happens. Without one, you may be left unprotected, as the below scenarios show.
Estate planning is especially useful if:
You have children and wish to provide for their welfare, education and advancement in life
You have considerable assets and your beneficiaries require the creation of more complex trusts within your Will
You have vulnerable beneficiaries with special needs
You have investment or business structures that are complex and may include a family discretionary trust, a self-managed superannuation fund or a private company
You wish to minimise tax liability of your estate or your beneficiaries, for example via superannuation or testamentary trusts.
Accidents happen
No one expects the worst, especially when you’re young and healthy, but life is unpredictable. Accidents or illness can happen at any time.
Once you turn 18, your parents no longer have the legal right to manage your affairs, even in emergencies. To give them (or someone else that you trust) that authority, you need to appoint them as your power of attorney. Without it, they will be unable to help you, even if you want them to.
Superannuation
Superannuation doesn’t automatically follow your Will, and only certain people, like spouses and children, can receive super directly. To make sure your wishes are followed, its important to speak to someone who can guide you through the superannuation rules and ensure that you prepare the right documents to achieve your desired outcome.
Avoiding default scenarios
If you pass away without a Will, your estate will be distributed according to the intestacy legislation in your State or Territory. This strict formula does not take into account any relationships that you may have with close friends or family members and can result in your assets going to a family member that you do not wish to benefit (or may not even know).
By having a Will in place, you get to choose who inherits your assets and who manages your estate, avoiding uncertainty and complications for your loved ones.
Travelling overseas?
Estate planning is not just about worst-case scenarios such as if you lose capacity or die – it can also help you manage your legal and financial affairs from far away.
If you are considering a gap year or long term stay overseas, a power of attorney document can authorise a family member or friend to handle any steps that cannot be completed online and need actioning in Australia.
What does an estate plan include?
Estate planning is more than just about having a will. We work with clients to establish the following as part of their estate plan:
Preparation of your Will
Determining who will administer your estate: Executor and trustees
Establishing a discretionary testamentary trust (if appropriate)
Designating guardians for any minor children and beneficiaries under your Will, and in the case of your incapacity
Determining Power of Attorney: Who can make financial decisions if you cannot
Establishing a Guardianship: Who can make healthcare and care decisions if you cannot
Creating an advance healthcare directive: Directions for your end-of-life care if you cannot make decisions for yourself
