Estate planning is important regardless of your personal circumstances, as it helps to ensure that your assets will be managed according to your wishes, in the most financially efficient and tax-effective way.
When thinking about estate planning for you and your family, there are many issues you should take into consideration. This checklist will give you a better understanding of why you should get your estate plan taken care of – now.
✅ What would you like to happen in the event of your death? For example:
- Gift specific assets to certain people
- Provide for children and/or grandchildren
- Lump sums to beneficiaries, either now or later
- Income streams to people (e.g. grandchildren for education, etc)
✅ Are you concerned about any potential risks associated with any of your intended beneficiaries? For example:
- Any spendthrift children or grandchildren?
- Any beneficiaries in business or signed personal guarantees (risks of bankruptcy, etc)?
- Any beneficiaries in a bad marriage or going through divorce?
✅ Do you have a will?
Where is it kept?
✅ Is the will still valid?
Are your personal circumstances in the will up-to-date?
✅ Does the will adequately deal with guardianship issues if minor children are involved?
✅ Does the will provide for establishment of a testamentary trust?
Are you familiar with the aspects of a testamentary trust?
✅ Can you think of anyone you have excluded from benefiting from the estate that may be entitled to challenge the will?
✅ Who is the executor of your will and is the executor the most appropriate person?
- Are they competent with financial matters?
- Are they still healthy and of sound mind?
✅ Have you completed a superannuation death benefit notice?
- Is it binding on the Trustee?
- How does it distribute superannuation in the event of death?
- Who are the beneficiaries and their relationship to the client?
✅ Do you have any of the following:
- Death insurance (inside/outside superannuation)
- Trauma Insurance
- TPD Insurance
- Income Protection Insurance
✅ Do you have outstanding loans that would need to be repaid?
What is the value of the loans?
✅ Do you have a business?
✅ Do you have a business succession agreement? (exit strategy)
- Does the agreement cover the method for valuing the business upon your departure from the business?
✅ Are there appropriate insurances in place?
- Is there outright policy ownership?
- Cross-Insurance?
- Key Man Insurance?
✅ Where your will leaves a business to a beneficiary, have you considered the ability of the beneficiary to:
- Contribute to the operations of the business
- Work with the remaining owner/s
- Trust their judgement (as appropriate) where the beneficiary has little knowledge of the business!
✅ Would passing on this business asset result in a family maintenance challenge against the will– have other beneficiaries been provided for?
If you have any questions, please contact us on 03 9886 0800 or via email.
Want to learn more? Join us for our upcoming Estate Planning webinar!
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2022. Please do not reproduce without the expressed written consent of the author.