Wills and Estate Planning: Protect Your Legacy and Loved Ones
By Brendan Taylor
November 2024
Life has a way of moving in phases, each with its own milestones and accomplishments. We start by growing up, going through school, and learning the skills we need to navigate the world. Then comes the work—a lot of work. As we settle into our careers, we devote years, often decades, to building not just a livelihood, but a foundation for our future. Along the way, we accumulate assets, achieve goals, and, with a little luck, build wealth.
Eventually, we get to a point where we step back from the hustle of daily work, shifting into retirement, enjoying the fruits of our labour. But even then, the journey isn’t quite over. After we’re gone, the legacy of what we’ve built continues to matter, often more than we realize.
And that’s where thoughtful estate planning comes in. Estate planning might sound serious, but it’s all about ensuring your loved ones are taken care of, and your assets go exactly where you want them to after you're gone. Whether you’re working with a small nest egg or a larger fortune, a little planning today can prevent family disputes, reduce taxes, and keep your loved ones protected tomorrow.
Will: The MVP of Estate Planning
A will is like the cornerstone of your estate plan – it calls most of the shots after you’re gone. Without one, the law decides who gets what, and let's be honest, that's probably not what you'd want! We strongly suggest you do not prepare your own will. It should be done by a lawyer.
Some assets can be dealt with separately from your will for example, the terms of a trust deed that you control could allow this trust and its assets to be left out of your will. This may help to avoid potential disputes.
Assets; Who gets what? : Choosing who inherits your assets can be complicated. Family, friends, charities? Just make sure you're clear about who gets what, and always have a backup plan if your primary choices can't be inherited.
Pro tip: Consider the nuances of your family dynamics. While a 50/50 split among children might seem fair, it may not reflect individual contributions, such as a child who has been more involved in your care or has put in years of effort in your business.Guardian: If you have children under 18, selecting a guardian is essential. This person will step in if something happens to you and your partner, so choose someone whose values align with yours and who can handle the emotional and financial responsibilities of raising your children. You can even include instructions on how you’d like them to be raised—a bit like leaving behind a parenting guide.
Executor: You’ll also need to choose an executor, the person responsible for ensuring your wishes are carried out. So, pick someone responsible, organized, and trustworthy – like the superhero of your estate plan! You can even choose more than one person if you feel the task requires multiple hands to manage effectively.
Do you have some family heirlooms or want to leave a special gift to charity? Write it down! Clear instructions can help avoid family squabbles.
Funeral Plans: Leaving It Your Way: While it’s tough to think about, including your funeral wishes can help your family during a tough time. Whether it’s a traditional burial or a cheerful celebration of life, make sure your preferences are known.
Enduring Power of Attorney: Your Financial Backup Plan: An Enduring Power of Attorney (EPA) is like appointing a financial deputy. If you ever become unable to manage your finances, your appointed attorney will step in. Unlike a regular Power of Attorney, an EPA remains in effect even if you’re incapacitated, ensuring that someone you trust is handling your affairs.
Superannuation: Don’t Forget Your Super! Your superannuation may not automatically go to your estate, so you’ll need to fill out a Binding Death Benefit Nomination to make sure it lands where you want it. It’s just another way to tie up loose ends!
Life Insurance: More Than a Safety Net: Life insurance isn’t just for paying bills – it’s your family’s financial parachute. It can cover living expenses, education, and more. Keep your policy up to date to match your family’s changing needs.
Testamentary Trusts: Protection & Flexibility: Testamentary trusts can offer tax benefits and asset protection, especially if you’ve got a bigger estate. They can also shield assets from creditors or provide some safeguards if a beneficiary goes through a divorce. It’s all about flexibility and control!
Review, Review, Review! Life doesn’t stand still, and neither should your estate plan. Marriages, divorces, new children, or grandchildren, and business structure changes all signal the need for a review of your plan. Regular updates ensure your estate plan stays aligned with your wishes and current circumstances.
Estate planning isn’t just for the super-wealthy or something to delay. By planning now, you’re securing your family’s future, ensuring they are protected and cared for when you’re no longer around. It’s never too early to start, and professional advice can help ensure every piece of your plan falls perfectly into place.
We can help guide you through the process and assist you in making informed decisions. Call us at (08) 9841 1200 to make a start.
Happy International Accountants Day: Celebrating Accounting
On the 10th of November, we joined accountants around the world in celebrating International Accounting Day, a day dedicated to recognising the essential role accountants play in business success and community support. This special date marks the anniversary of the publication by Luca Bartolomeo de Pacioli in 1494, who is celebrated as 'The Father of Accounting' for his foundational work in the field.
We marked this occasion with a fun and engaging quiz for our team, testing their knowledge with some entertaining accounting questions!
Watch how we celebrated and tested our team's accounting acumen in our fun quiz!
