Estate Planning is important. It involves planning what will happen to your assets in the event of your death or if you were to become sick or injured and cannot make decisions for yourself.
1. A Will on its own does not provide adequate protection
You have a Will - Great! However, a Will on its own generally does not cover non-estate assets like superannuation, companies and trusts. Many people have superannuation, and together with any life insurance component, many people (including young adults) will have a large superannuation payout on death. Make sure all assets are protected with an Estate Plan which takes into account superannuation and other non-estate assets like companies and trusts.
2. Reduce Tax
If you structure your affairs correctly, you could save your beneficiaries from paying thousands of dollars in unnecessary tax. Estate Planning will ensure assets, like the family home and superannuation, are gifted to beneficiaries in a tax effective manner.
3. Avoid leaving a mess
Incomplete Estate Planning may leave your loved ones dealing with an almighty mess if something were to happen to you. Many people only consider Estate Planning once a close family member or friend has had a bad experience with a messy estate. Implementing an Estate Plan now, while you are still fit and healthy, will avoid leaving a costly mess.
4. Save costs and avoid delays
A well thought out Estate Plan may save your beneficiaries thousands and ensure that beneficiaries get their inheritance as soon as possible without delay. Avoid unnecessary legal costs and lengthily delays with an Estate Plan that allows beneficiaries to finalise your estate as soon as possible.
5. Protect assets from claims
Reduce the risk that someone may make a claim upon your estate in the event of your death. Ensure that beneficiaries whom you want to benefit from your estate can take their inheritance and minimise the risk of a Will dispute.
6. Protect yourself in the event you cannot make decisions on your own
Dementia is the single greatest cause of mental incapacity in Australians aged over 65 years. Current statistics are alarming with 1 in 10 people over 65 years being diagnosed with dementia, and 3 in 10 people over 85 years being affected by the disease. A Will does not allow executors to make decisions in the event of incapacity. An Estate Plan will include documentation to authorise your nominated person/s to take control and make decisions should you become incapacitated.
At Generation Legal we specialise in Estate Planning. We can assist you structure your Estate Plan in a way that provides protection and peace of mind. Contact us on (02) 8518 6000.