There are some very good reasons why you shouldn’t put off estate planning, no matter how much or how little you have to pass on.
Nearly half of all Australians die without a valid will, which is startling. Dying without a valid will is called dying intestate, and it means that everything you own when you die gets distributed by a state-set formula, instead of by any wishes you may have had. You may also want to put a trust in place to protect your assets from both the state and possibly your beneficiaries.
You probably already know who you want your things to go to, but you should make sure this is set in concrete and incontestable, with the will or trust instructions making the most of your assets with current taxation laws. To do this, you need a legal will or pre-set-up trust. You will need a trusted financial adviser and lawyer.
Death itself isn’t a ‘tax event’ exactly, but the passing on of assets is, which will affect the people you pass on your assets to.
The benefits of having an estate plan are numerous.
- Asset protection is in place from the personal or legal issues of the beneficiaries.
- Having an estate plan avoids emotional and legal warring from family or other parties, including those who missed out. Avoid family feuds over your estate.
- The process of estate planning allows you to do a thorough going-over of the things you actually own, and where you would like to see the assets go. A good and thoughtful process is best, and taking some time to work this out is never time poorly spent.
- To make it tax effective, you need a trusted adviser to walk you through the terminology, help you choose the best options in terms of protection, and provide a solid foundation of impeccably-filled-out paperwork. Vanessa Ash can help you with this.
Possible problems to mitigate include:
- Today’s mixed families present enormous potential for problems, as everyone wants a piece of the pie, and may in fact be eligible to contest a will, if there is one, and can swoop in and snatch your assets if there isn’t.
- Ignorance can cost you, and wills don’t cover everything. For example joint assets need to be examined carefully, as by law they automatically go to the other joint owner in full – a misunderstood concept for many that covers bank accounts, investments and property. Your will can’t override this.
- Trusts are complicated and there are some elements that won’t cover you – you need to know what these are, for example if your assets are held in trust, you no longer ‘own’ them: the trust does. This means you can’t gift them in your will.
- If estate planning hasn’t been high on your to-do list, you may not have decided who your superannuation beneficiaries are, a power of attorney, or guardianship issues of your children. These are important, so don’t wait any longer – you never know what tomorrow might bring.
Make sure all the Ts are crossed and the i’s dotted. Don’t leave it to chance.
Write your own story. Call Vanessa Ash and Associates today.
