What Is the Importance of Estate Planning in a Person’s Life?
Planning ahead for your future is important. It can provide you with peace of mind knowing you have a plan in place that secures your family’s future and protects your loved ones from the unexpected.
Developing an estate plan can help your family members carry out your wishes in the event of your death or if you reach a point in life where it’s difficult for you to make your own decisions. This can include matters such as instructions on funeral arrangements, medical decisions, future care and more.
It may be beneficial to start discussing your wishes with your loved ones today and begin the process of developing your estate plan by seeking an ethical financial planner.
What Is Estate Planning?
Estate planning is a process that outlines the different financial and legal decisions you can make regarding your assets, including your personal property. These decisions are critical, especially if you want to make sure your assets are distributed to the right person or people who matter to you most. It can also avoid putting strain and stress on your family in an already emotional situation as the plan will be able to be carried out by your appointed executor with the support of your solicitor.
A certified financial planner can help you prepare your estate plan and connect you with the right professionals, such as an estate planning lawyer, to ensure your plan is tax-effective and legally binding.
Why Are Estate Plans Important?
Your estate plan could include organising a valid Will, Testamentary Trusts, a Power of Attorney, details about life insurance, superannuation or death benefit nominations and a plan to minimise the taxes on your estate so that your beneficiaries are not left with unfair tax implications.
Estate planning is essential for both married couples and single people alike.
What is The Importance of Estate Planning For Married Couples?
If you are married, estate planning may be beneficial and it can help both you and your spouse prepare for the worst-case scenario.
One of the main things that a married couple should consider in their estate plan is the division of their assets. It tells both spouses how they should split their assets once one of them passes away. The couple may also use it to determine who will be the guardian of their children, should anything happen to one or both of them.
If you do have young children you may also want to consider including the following legal document:
- Testamentary Trust – This allows you to appoint someone (a Trustee) to manage the assets you have placed in a trust which comes into effect once you have passed.
This allows you to include conditions on the distribution of your assets and how they are to be managed by your beneficiaries. For example: If you have minor children or children with a disability, who will not be able to manage their inheritance immediately, you can decide through a Testamentary Trust how your assets are to be managed.
What Legal Documents Should You Consider Including in Your Estate Plan?
Other important documents you may want to consider including in your plan are:
- Advance Care Directive
- Enduring Powers of Guardianship
- Enduring Power of Attorney
By seeking professional financial advice for estate planning, you can ensure you have included the documents that are going to provide your intended beneficiaries with the most tax-effective outcome.
Should I Seek Personal Financial Advice When Estate Planning?
An estate plan involves ensuring all your financial assets are being dispersed to the people that matter the most to you in the event of your death. When it comes to learning about how you can distribute your estate, you may find yourself overwhelmed with the information out there. A financial adviser can help simplify the process and ensure you are well-informed to make the right decisions regarding your estate allocation.
Seeking Estate Planning Advice in Adelaide?
Estate planning is crucial because it involves your life’s legal and financial aspects. Plan ahead for your future by beginning the estate planning process as early as possible.
Book an appointment at Novo Wealth today for estate planning in Adelaide. We will work with you and your solicitor to help protect your wealth and pass them smoothly to your loved ones.