Top 10 Estate Planning Priorities

Top 10 Estate Planning Priorities: Securing Your Family's Future

Now is always a great time to start prioritize estate planning and safeguarding your family's wealth – especially if you are a business owner or professional with assets of over $1M.

Here is a list of what we consider to be the top ten priorities, to help you get started.

1. Create or Update Your Will:

Your Will is the foundation of your estate plan. If you haven't crafted one yet, prioritize creating a Will this year. For existing Wills, regularly review them to make sure they are still aligned with your current wishes and life circumstances. Events like marriage, divorce, or the arrival of children will likely mean an adjustments to your Will is needed. Consider incorporating a testamentary trust for enhanced family wealth protection.

2. Establish an Enduring Power of Attorney

Designating someone to manage your affairs through an Enduring Power of Attorney is so important. This provision is not just for older people; unexpected events can happen at any age.

3. Review Your Beneficiaries

Regularly review and update the beneficiaries listed on your life insurance, superannuation, and other financial products. Ensure this is still in alignment with your current relationships and preferences.

4. Create a Living Family Wealth Protection Trust

A living trust streamlines the distribution of your assets to heirs, bypassing the cumbersome probate process while granting you greater control over where your assets go.

5. Organize Your Digital Assets

Incorporate digital assets such as social media accounts, digital currencies, and online banking credentials into your estate plan. You may want to consider listing them within your Will or as a supplementary schedule with professional legal advice.

6. Plan for Your Business's Future

If you own a business, devise a succession plan to ensure seamless operations in your absence. This safeguards the interests of your family and employees, particularly if you're the sole director or shareholder.

7. Put in place a Life Insurance Policy

Life insurance provides financial stability for your family in the event of your unforeseen demise. Regularly review your policy to ensure it adequately meets your family's needs.

8. Understand Your Tax Implications

Estate taxes can substantially deplete your assets. Familiarize yourself with these taxes and implement strategies to mitigate their impact. The usual culprits are Capital Gains taxes and Income Tax on the payout of your Superannuation benefits

9. Establish a Healthcare Directive

Ensure your medical preferences are respected through a healthcare directive and living Will, especially if you're unable to communicate them yourself.

10. Speak with a Professional

Estate planning can be complicated. Seek guidance from to ensure your plans adhere to legal standards and reflect your intentions accurately.

Working through these priorities will not only safeguard your family's wealth but also grant you peace of mind. Remember, estate planning transcends wealth or age; it's a commitment to protecting your loved ones and honoring your wishes. Don't postpone these essential tasks any longer. Your family's future hinges on your proactive actions.