Estate planning is about more than making a Will. A well-considered estate plan looks at what may happen during your lifetime, as well as what happens after your death.
It can include planning who can make decisions for you if you are unable to make them yourself, how your assets and superannuation may be dealt with after your death, and how you would like to provide for the people who matter to you.
The right estate plan will depend on your family, your assets and your circumstances. For some people, the arrangements they need are relatively straightforward. Others may need to give more thought to young children, a blended family, a vulnerable beneficiary, superannuation, jointly owned assets, trusts or business interests.
What can form part of your estate plan?
Estate planning can involve a number of different documents and arrangements. What you need will depend on your circumstances.
Your estate plan may include:
Questions worth asking about your estate plan
What happens to my kids if I die?
If you have children under 18, your Will can record your wishes about who you would like to care for them if you die. You can also decide how their inheritance is to be held and managed while they are young, including the age at which they will receive it.
There can be more to consider depending on your family’s circumstances, particularly where parents are separated, there is a blended family, or a child needs additional support.
Who makes decisions for me if I can't?
An Enduring Power of Attorney allows you to appoint one or more people you trust to make certain decisions for you. This can include financial decisions and, if you lose capacity, personal and health decisions.
You can choose who you appoint and consider how you would like your attorneys to make decisions if you appoint more than one. An Advance Health Directive may also be appropriate if you want to give directions about your future health care in particular circumstances.
Does my Will deal with my super?
Not necessarily. Your superannuation does not automatically form part of your estate or pass according to your Will.
What happens to your superannuation death benefit will depend on matters including the rules of your superannuation fund and whether you have made a valid death benefit nomination. This is why your Will and your superannuation arrangements should be considered together as part of your estate planning.
Does everything I own pass under my Will?
No. Your Will only deals with assets that form part of your estate, and some assets may pass or be dealt with in another way.
For example, the way jointly owned property passes after death can depend on how it is owned. Superannuation is also dealt with separately, and interests involving companies, trusts or other structures may require additional consideration.
Understanding what you own and how you own it is an important part of estate planning.
What if I have a blended family?
Blended families can create additional estate planning considerations. You may want to provide for your spouse or partner while also ensuring children from a previous relationship are considered, and different assets may pass in different ways after your death.
There is no single estate plan that suits every blended family. Your relationships, assets, ownership structures and the needs of the people you want to provide for all need to be considered when deciding what arrangements are appropriate.
Do I need a testamentary trust?
Not everyone needs a testamentary trust. Whether one is appropriate will depend on your circumstances and the people you want to provide for.
A testamentary trust is created by your Will and comes into effect after your death. It can provide greater flexibility in how an inheritance is managed and distributed and may be useful in particular circumstances, including where a beneficiary is young, vulnerable or may benefit from assistance managing an inheritance. There may also be asset protection or taxation considerations depending on the circumstances.
Life changes. Your estate plan may need to as well.
An estate plan that was right for you several years ago may no longer reflect your life today. It is worth reviewing your arrangements when there has been a significant change in your family, relationships, assets or the people you have appointed to act for you.
Changes that may prompt a review include marriage or separation, the birth of children or grandchildren, buying or selling significant assets, changes to your business or superannuation, or changes in the circumstances of an executor, attorney or beneficiary.
Even without a major life event, reviewing your estate plan from time to time can help ensure your arrangements continue to reflect your wishes and circumstances.
How we can help
Estate planning starts with understanding you, your family, your assets, what matters to you and what you want your arrangements to achieve.
We will talk through your circumstances, explain the options that are relevant to you and help you decide what should form part of your estate plan. This may involve preparing new documents or reviewing and updating arrangements you already have in place.
Where your estate planning involves superannuation, business interests, trusts or other financial arrangements, we can also work with your accountant or financial adviser where appropriate.