5 tips on estate planning
Many of the Australian might aware of the importance of Estate Planning, the simplest estate plan kicks off by making a Will in favor of your beneficiaries when the death event triggers.
The main objective of doing estate planning is to protect your beneficiaries and avoid any future pitfalls when the Will maker would not exist in this world anymore.
Don’t die without a valid Will or Intestate as laws of administering your estate are different across Australian States and Territories.
There may be a likelihood that consequences of dying intestate may be against your wishes or there will be avoidable tax burden that will be imposed on your beneficiaries as the Will was not tax-effective and well planned.
Estate planning includes establishing a method to manage your estate assets after you die – the legal instruments and structures, such as a Will, you put in place to transfer your belongings within the occasion of death.
Question about estate taxes must be asked at the time of discussing the estate plan with the legal advisor and who’s within the Hook? Inheritance taxes can be tough.
Most people have to manage them at an inconvenient time. It can be far better to master the legal guidelines now so you might be Prepared afterword.
When people owned real or financial assets and die without a proper valid Will then what would be the consequences?
There are likelihoods of increasing risks that the estate may be eroded by claimants or creditors and the actual beneficiaries may suffer. It is therefore imminent to consider a robust estate plan to avoid.
Here are 5 tips which can help to mitigate the above situation if proper Estate planning is done alongside with the help of qualified professional legal advisor:
- Making a Will – Even if you have fewer assets you still need a Will which can also be created online or can buy off the shelf from Newsagent. However, it is highly recommended to get help from a professional legal advisor on this matter to explain the laws for smart decisions in making a tax-effective Will.
- Appoint an enduring Power of Attorney –means person or organisation will act on your behalf for decision making even when the grantor becomes mentally incapacitated.
- Appoint of enduring guardian- means when there will be minor beneficiaries or children to be looked after at the time when both parents die.
- Consider an appropriate trust structure –means taking advantage through various types of trust structures including testamentary, discretionary or family trust. In any case, the trustee must act following the terms of the trust deed to protect trust members and beneficiaries.
- Making a binding death nomination – it will bind superannuation trustees to follow your wishes and must act according to your nomination in distributing superannuation money. In absence of valid binding nomination, super trustees will abide by the terms of the trust deed in distributing the death benefits.
Note: The above information provided in is unless specifically stated otherwise, general in nature and is not to be relied upon as personal financial advice as it has not considered your circumstances, needs or objectives.
If you wish to require advice on the estate planning matters please contact your personal financial or legal adviser.