Estate Planning

Traditionally, financial planning has placed considerable emphasis on the processes of wealth creation and wealth protection. However until recent years, little emphasis has been placed upon wealth distribution after death. More recently, the importance of the distribution and succession of wealth to future generations has been recognised and, as a result, estate planning has emerged as an essential part of a person’s financial plan.

So what is estate planning? Estate planning is more than just preparing a valid Will. Estate planning is all about arranging a person's financial affairs while they are alive to ensure that when they die, their assets will pass to the people they want as quickly, simply and tax effectively as possible. Estate planning therefore encompasses many different services including financial planning, tax planning, Will drafting and estate administration.

The general aim of good estate planning should be to remove the possibility of financial hardship for your beneficiaries and to minimise family disharmony. Estate planning should therefore involve:- 

• The tax effective distribution of your assets following death in accordance with your wishes;
• The protection of your assets against the possibly disputes or claims of others;
• The transfer of your business, investment structures and non-estate assets in a way which is in line with your overall estate wishes;
• Dealing with potential adverse financial repercussions which may affect you or your dependants as a result of your death, loss of income or disability;
• Ensuring that you have properly executed a Will and any other necessary documents to give effect to your wishes and that you have formally appointed people you trust to manage your affairs.

The important aspect of modern estate planning is that it should deal not only with those assets owned by you personally but the assets that are controlled by you, e.g. assets held in trusts and superannuation.

By developing an effective estate plan you can therefore help to ensure your family has enough money for the retention and maintenance of family assets, to pay off any debts, such as the mortgage, or to provide sufficient income to meet the living expenses of any dependants. The estate plan should also allow the estate to be administered with reasonable simplicity and to ensure that the deceased’s legal personal representative is capable of making the necessary decisions in the interest of family members.

Contact us for more information.