How to guide your thinking throughout the estate planning process.

 

Family Income Benefit

Estate planning has always been a complicated process. With the introduction of Superannuation, however, and the everchanging regulatory landscape in succession law, estate planning has become increasingly complex. While the thought of the complexity of planning your estate and thinking about your legacy can be difficult, starting with a few key questions can help to make the process easier. These questions will help to shift your thinking about estate planning to what kind of legacy you’ll leave and how you can continue to build this legacy through the younger generations in your family. Here’s what you need to be asking yourself throughout the estate planning process.

Who do you need to provide for in your estate?

Depending on how old you are and the age of the generations below you, you’ll need to think about how you’ll provide for your family in your estate. For example, if you have young children, you would include details about your children’s care if one or both parents passed away. If you have older children, however, your thoughts may shift to how your estate may be administered and shared amongst them.

What’s the value of your assets now and projected future value?

It’s important to understand the value of your estate now and its projected future value as you’re going through the estate planning process. If you’re likely to have significant cash assets such as Superannuation and life insurance after you pass away, consider how it could be invested through a testamentary trust (TT) to continue growing and provide for your family.

How will you keep assets within the family?

Family law and the complexity of succession law has created a necessary focus for people to think about how they will protect their assets now and after they pass away. To properly protect these assets, no matter what potential relationship and family changes occur, you need to think about the best way to structure your estate so it remains with the intended recipients. This can be done by organising assets within a trust and including specific provisions around your estate should someone named in your will, such as an adult child, go through a divorce or relationship breakdown.

Remember, estate planning is complicated especially if you have a range of assets and wealth held across different states amongst different parties. Make sure you speak with a trusted insurance adviser, financial adviser, legal professional and accountant to ensure all parts of your estate plan are working properly together today and will work properly in the future.

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The information in this article is of a general nature and does not take into account your financial objectives, circumstances or needs. You should consider your personal situation and requirements before making a decision. If you have concerns or questions, please contact Aspire Risk Advisers.