Most believe that estate planning is something to be considered once you reach an old age. In truth, everyone should consider having at least a basic estate plan done at any age.
Developing an estate plan as early as possible can provide you with peace of mind knowing that your belongings and assets are going to those you love and care for.
Whilst estate planning can be a difficult conversation to have at times, it’s an important one to have with your family so they are aware of your plans. It also shares your wishes if in the event you become unwell or in circumstances where you aren’t able to communicate your needs.
Here are three essential tips you can consider when it comes to your estate planning:
Tip #1: Update Your Estate Plan As Regularly As Needed
Once you have established an estate plan, it’s important you know that it doesn’t just stop there! You should consider updating your estate plan regularly, especially when you go through big life changes that can have an impact on your asset distributions decisions. Despite what many believe, there’s a lot more to an estate plan than just the will.
There are some critical documents you may decide to reflect or change such as:
- Advance Care Directives
- Powers of Attorney
- Enduring Powers of Guardianship
- Testamentary Trust
These documents are common elements to include in your estate plan. It may be beneficial to seek advice from a financial planner who can help guide you through the estate planning process and ensure your wishes are identified.
Tip #2: Consider Establishing a Testamentary Trust in Your Will
When you establish a Testamentary Trust in your will, you can provide some great benefits to your nearest and dearest. It allows you to nominate someone (a trustee) on your behalf to manage the assets you’ve placed in your will, which come into effect once you have passed.
For example: If in the case you had minor children or children with a disability, who won’t be able to manage their inheritance straight away, you’re able to provide specific instructions through a Testamentary Trust of how and when your assets are to be managed and distributed.
Benefits of a Testamentary Trust:
- Trusts eliminate the need for probate, saving beneficiaries both time and money.
- A trust can help to lower estate taxes and shield an estate from its heirs’ creditors.
- Legal and judicial fees are deducted from estate assets, lowering the amount left to heirs.
Tip #3 Seek Expert Estate Planning Advice From a Financial Planner
It’s important to ensure you feel reassured that your wishes will be met in the event of your passing or if you’re unable to communicate them. One method of assuring this is through seeking support from an experienced financial adviser when developing your estate plan.
A financial planner can provide you with the necessary knowledge and tools to help you make the most effective decisions surrounding the distribution of your assets and management of your wealth. They can help ensure you make tax-effective decisions that will benefit your loved ones and secure the value of your assets.
It’s easy to make mistakes or miss potential opportunities when it comes to the process of estate planning. However, seeking the right financial adviser can help point you in the right direction and support you in making sure your best interests are met.
It’s all about preparation. When it comes to the end of our lives, nobody can be sure. Fortunately, there are ways to ease the impact of your death on your loved ones, and this is simply by accomplishing an estate. With time and effort to plan with a professional, you’ll be well on your way to securing the future of your family after you pass on.
Are you looking for estate planning advice? Novo Wealth specialises in aiding people with retirement planning. You can count on us to provide ethical financial advice to professionals and business owners.