What is estate planning?
Estate planning is simply:
- effectively preparing for your loss of mental capacity before you die by setting out:
- who is to manage your assets; and
- what is to happen with your personal care; and
- effectively preparing for what is to happen when you die, particularly with your wealth.
An effective estate plan is about much more than preparing a simple will or kit will from the newsagent.
Why should you have an effective estate plan?
If you don’t have an effective estate plan and you lose your mental capacity, an application may need to be made to a Government tribunal for someone to be appointed to manage your financial and personal needs. Not only might someone be appointed that you would not want but they may not do what you want.
If you don’t have an effective estate plan when you die, not only might your assets not pass in the way you want but a valuable opportunity will be lost:
- for your beneficiaries to SAVE TAX on the income from investment of the gifts you make to them; and
- to PROTECT ASSETS against the various risks that need to be taken into account when passing wealth on death.
What are the key documents in an effective estate plan?
The key documents in an effective estate plan are:
- optional testamentary trust wills that will give beneficiaries an opportunity;
- to SAVE TAX on the income from the investment of the gifts made to them; and
- to PROTECT ASSETS against the various risks that need to be taken into account when passing wealth on death;
- enduring powers of attorney;
- enduring guardianship appointments;
Do You need assistance with your effective estate planning?
If you need any assistance with your effective estate planning, please get in touch with us so that we can show you how to do it, including the fact find with the minimum of fuss. Let us show you all about the 5 stages, 7 rules and 7 risks of effective estate planning.
Disclaimer
The information in this article is general in nature and is not intended as legal advice. You should not do or fail to do anything in reliance on information in it. We do not accept any responsibility for any loss that you suffer if you do. You should seek professional advice before you do anything about the issues set out in this article.
