Do you have an estate plan?

Do you even have an estate plan? Don’t know what one is?

There are at least 3 documents you should consider as part of your personal estate planning:

  1. A will;
  2. A power of attorney; and
  3. Appointing an enduring guardian.

A WILL

Will is a legal document that details who will take care of your assets and distribute them on your death in accordance with your stated wishes. Consider:

  • Who you would want to control your estate if you died?
  • What would happen to your estate if you didn’t have a Will?
  • Who would look after your children until they are adults?
  • That life insurance proceeds, jointly owned assets and superannuation benefits are likely not to form part of your estate on your death.
  • What would happen to your business if you died? Business succession is often overlooked or not adequately dealt with by lawyers in wills.
  • Who would control your family trust if you died? Have you even read the trust deed?
  • How your family could best receive any inheritance from your estate having regard to such things as:
    • their own estate planning; asset protection measures; and
    • tax minimisation issues.

If your Will does not consider the above issues adequately or at all, then your intended beneficiaries could be receiving far less from their inheritance than you might hope and paying more tax than is necessary each year after you die.

If you pass away without having a valid Will in place (dying intestate), then your estate will be divided up without regard to your wishes at all.

TESTAMENTARY TRUSTS 

Testamentary trusts can save your family thousands in tax each and every year though income splitting opportunities and also provide a level of asset protection to benefit future generations. See our previous article on Wills with Testamentary Trusts.

POWERS OF ATTORNEY

Who would make decisions about your finances or assets if you were unable to (such as if you are in a coma, are unconscious or suffer from mental incapacity such as dementia)?

You can appoint a power of attorney to be able to manage your affairs. If you do not, the NSW Civil & Administrative Tribunal (NCAT) can appoint a person that you do not know to control your assets and make decisions for you.

APPOINTING AN ENDURING GUARDIAN

Who would make decisions regarding your medical and dental treatment and where you live if you are permanently or temporarily incapable of doing so?

If you don’t nominate somebody as your enduring guardian, then NCAT can appoint a person to make those decisions, which can include what medical treatment you get or if life support is not maintained.

FURTHER INFORMATION

For further information in relation to estate planning, business succession or any commercial law issues, contact Craig Pryor, principal solicitor at McKillop Legal, on (02) 9521 2455 or email craig@mckilloplegal.com.au.

DISCLAIMER
Content contained in this document is general information only and is not advice, financial planning, legal or otherwise.
This document was prepared by Integrated Planning Systems Pty Limited ABN 21 051 429 184 trading as McKillop Financial Planning, an Authorised Representative of GWM Adviser Services Limited ABN 96 002 071 749 trading as MLC Financial Planning, Australian Financial Services Licensee, 105 – 153 Miller St, North Sydney NSW 2060, a member of the National Australia Bank Group of companies. The information is current as at 1 June 2017.
The article does not take into account your personal objectives, financial situation or needs. Accordingly, you should consider how appropriate the information is to you with regard to your personal circumstances. You may wish to obtain an adviser’s assistance, tax and/or legal advice to make this assessment. Before buying any financial product, you should read the Product Disclosure Statement (PDS) for that product and consider the contents of the PDS before making a decision about whether to acquire the product.
Opinions constitute our judgment at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia Group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility of errors or omissions for this document.

GWM Adviser Services Ltd is not responsible for the advice and services provided by McKillop Legal or McKillop Property. Fionne McKillop is a director of McKillop Legal Pty Ltd and as a result, will receive distributions and/or other benefits from McKillop Legal Pty Ltd.

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