Estate Planning
Most of us expect to live to a ripe old age, but what if the unexpected happens and we don’t? No one can ever predict what’s around the corner, which is why it’s important to have a Will (and other Estate Planning tools like Power of Attorney and Enduring Guardianship) and adequate Life Insurance in place to protect those we leave behind.
If you die without a Will (this is called ‘intestate’), your family may not inherit as you assumed they would because your assets – including property, cars, heirlooms – will be distributed by a pre-determined formula. Each state in Australia has a different process and formula but chances are, it’s not the formula you would choose yourself, especially if you have an ex-spouse and children from a previous marriage.
A well-thought out plan that documents specific procedures relating to various possibilities can help your family maintain control of assets in the face of tragedy.
The person who inherits your house when you die, for example, will also inherit the mortgage – and is responsible for the debt remaining. Taking out sufficient Life Insurance eases this burden because it can be established to cover your home loan in the event of death, sickness or total disability.
There are also right and wrong ways to put a Will together. Here’s some tips.
- Update your Will regularly, including changes such as marriage, divorce, buying a business or property. If you are in your second or third marriage, you can instruct your estate to be divided fairly between children from previous relationships.
- Ensure you leave adequate provisions for dependent’s or your Will may be contested.
- Seek advice on tax implications of leaving assets to different family members as these may alter the value of your assets when they are sold off.
- Be wary of putting a Will together without expert advice as it may be declared invalid if not prepared legally.
- Appoint a guardian to look after any children under the age of 18 until they are old enough to look after themselves, otherwise it may be left to the court to decide.
- There are other Estate Planning tools to consider and be professionally advised on such as Testamentary Trusts, Enduring Guardianship and Power of Attorney, so seek the help of an expert.
If you would like to discuss your Estate Planning or Life Insurance needs, please contact us and we will connect you with a specialist who can take care of you and give you peace of mind that you and your family are protected.
*This information is general in nature and does not take into consideration your individual circumstances. Please contact us for further information.
