Estate Planning
An Estate Plan is a set of documents which determine what you want to happen to your assets and your lifestyle, if you become either mentally incapacitated or you pass away. Generally, this will include consideration of assets held in your own name, in your superannuation fund, in family trusts and insurance policies.
Estate Planning is complex in nature and requires expert knowledge of your overall financial situation, goals and objectives. Please contact a Wealth Adviser at Absolute Financial to discuss how a correctly drafted estate plan forms part of your overall wealth creation strategy.
Common Estate Planning Documents include: -
Will
A will is a legal document which documents how you would like your assets held in your own name to be dealt with upon your death. Your will also identifies who you would like to be the guardians of any surviving children under 18.
Testamentary Trust
Testamentary Trusts are discretionary trusts, established by the will for the benefit of the nominated beneficiaries. Assets controlled by the will can be passed into testamentary trust(s) and provide greater potential for tax savings and asset protection for your entire family.
Enduring Power of Attorney
A Power of Attorney is a deed that appoints someone else to be able to manage your assets on your behalf. You can stipulate who you wish to appoint and conditions attached to the appointment. An Enduring Power of Attorney appointment is one that continues in effect AFTER you have lost mental capacity.
Enduring Guardian
An Enduring Guardian is a deed that appoints someone to make health and lifestyle decisions for you once you can no longer make them for yourself.
Insurance Beneficiaries
Life Insurance policies have death nominations that can operate outside your Will. It is essential that these are kept up to date and the nomination is consistent with your overall goals and objectives.
Superannuation Beneficiaries
Superannuation (and insurance with superannuation), will also operate outside of your will. It is essential that these are kept up to date and the nomination is consistent with your overall goals and objectives. Your nomination could only last 3 years and therefore requires constant review.
Business Buy Sell Agreements
The death of a small business owner can have a major impact on your family and business partners. Without an agreed Buy Sell Agreement in place, the ownership of the business will form part of the deceased estate. It is the executor of the estate's responsibility to realise assets and pay to the beneficiaries. This could result in a conflict with the other owners who do not wish to sell the business and may not have the funds to purchase the business share from the estate.