No one likes to think about their death, especially if you’re young. How much time do you give to thinking about the future of your personal wealth when you’re gone? Planning what happens to your estate isn’t like planning a holiday trip – it’s not fun, but it’s important for your loved ones and your children.
What is estate planning? Estate planning is the planned distribution upon your death of your total wealth – your assets, including your possessions, any investments, including but not limited to shares, property, companies and superannuation. Estate planning is important to ensure that it is you alone who decides the transfer of your own wealth to your intended beneficiaries.
Do the 1 July 2017 changes to superannuation affect estate planning? Yes, they do. There are superannuation changes concerning limits to the amounts you can have in a pension account and to transfer balance caps to beneficiaries, including your spouse. Timely discussion of the management of your superannuation will enable a recipient to avoid an uncalculated breach of the limits and caps.
How do you know if you need to be doing something about it? Firstly, estate planning isn’t for the ultra-rich – it’s for anyone who wants to make sure that their assets in any financial class, even the family home, are passed on to the people you care about without complication, the courts or excessive capital gains tax (CGT), where this may apply. If you have children, creating an estate plan with your financial advisor is essential to giving your children a secure future.
What happens if you don’t consider estate planning for your wealth? If you’re thinking you don’t need or want to prepare for the future beyond your death, prepare your estate for your family to avoid the courts making decisions about your estate on their behalf. It can take months if not years if it is left to the courts and it can be distressing for your loved ones during this process.
In addition, protecting your beneficiaries from any discrepancies on the complexities of your estate or from family members squabbling amongst each other can give you and them peace of mind. Having a plan in place benefits those inheriting a portion of your estate, so they can be spared any angst about how to handle your estate after you’re gone.
Is estate planning for you? To protect your beneficiaries and decide in advance what you want them to receive when you no longer can give it to them yourself, estate planning – planning your wealth distribution in advance – is for you.How can YML help?
Talk to our Financial Advisors today to see how YML Group can assist you with planning your estate. Contact us on (02) 8383 4400 or by visiting the Contact Us Page.