Do you have a clear and current will?

Do you have an up-to-date will that takes your current wishes and situation into account? If your personal, business or financial situation has changed recently, your will may be invalid or outdated, so it’s important to revise it to accommodate these changes.

Without a current will your wishes may not be carried out and potentially cause your family considerable distress. Also, any legal disputes that arise could erode the value of your estate significantly. 

Does your will name a suitable executor?

Your will should also name an executor – the person(s) who will ensure the will is carried out according to your instructions. Does your executor have the resources and time to devote to what can be a complex and time consuming task? Would they play an impartial role in any family disputes? Are they willing to accept the legal responsibilities? If not, you may want to consider a professional executor. Learn more about an executor’s responsibilities. 

Do you have a complex family situation?

Any family situation that involves marriage, divorce, blended families, spendthrift children or those who need special care (such as disabled family members) requires careful planning. Estate planning can help reduce any future issues and provide greater financial security for your loved ones. 

What will happen to your super?

Your super is not covered by your will and current legislation restricts to whom you can leave your benefits. Whether you belong to a public super fund or have a DIY super fund, having the right documentation in place is essential. It is also important to consider how your super benefits will be taxed when you pass away. A financial adviser can help with this. 

Do you have an enduring power of attorney?

What would happen if you suddenly became unable to manage your financial affairs? An enduring power of attorney nominates someone in advance to act on your behalf should you lose capacity in the future to make financial decisions. This includes situations where you: 

• unexpectedly become ill or have an accident 
• are developing an illness (or have a predisposition to one) such as dementia or Alzheimer's disease where you may not be in a position to make financial decisions in the future.

Without an enduring power of attorney, your family would need to apply to a state authority to appoint an administrator to manage your affairs. Your assets could be frozen for a lengthy period and decisions could be made that are not in line with your wishes. 

Will tax diminish the value of your estate?

Are you concerned that the taxes paid by your estate and beneficiaries will detract from your legacy? With the correct structures in place, you can help minimise tax on your estate and maximise your beneficiaries' entitlements. This might include different types of trust and superannuation structures. 

Do you intend to leave a gift to the community?

Establishing a charitable trust can be tax effective and provide a gift that will keep on giving. Rather than a one-off donation to a charity, money in a charitable trust is invested and any income earned is distributed to the charitable cause, resulting in gifts being made year after year. This can be established during your lifetime or as part your estate plan. Find out more about charitable giving. 

Do you have personal insurance cover?

Do you have adequate personal insurance cover, such as life insurance or key person insurance (for business owners)? Insurance cover can help to repay debts and to take care of your family and/or business if you were to die. Find out more about insurance. 

Does your business have a succession plan?

What will happen to your business when you die? Will your business partner take over? Will your family be compensated for any stake in the business? Will business continue or will it close? A succession plan should make provisions for any of these scenarios to ensure that your business affairs are managed according to your (and your business partner’s) wishes and that any family members are accounted for.

What’s next?

• Contact Perpetual Private Clients about creating an estate plan.

 

Perpetual or Perpetual Group means Perpetual Limited, ABN 86 000 431 827, and its subsidiaries. Perpetual Private Clients advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This information has been prepared by Perpetual and contains information contributed by third parties. It contains general information and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional financial, tax and/or legal advice. The information is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. However, the statements including assumptions and conclusions are not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.