|
Back to Blog
Life is precious and its flame can be extinguished at a ripe old age or earlier than anticipated. Leaving behind an inheritance for your loved ones can be a dutiful way to ensure that they live a fulfilling life in your absence. Estate planning is a responsible way to ensure that your spouse and/or children receive that inheritance, whenever you may reach your mortal coil. Below are five quick tips to secure the inheritance for your loved ones with estate planning: 01. Make a Will As Soon As Possible One of the first things that might come to mind when thinking of estate planning is preparing a final will. Your will is essential for dividing your assets when you die and it can be done at any time so long as you have two witnesses (not beneficiaries) present. You can write it on a piece of paper, have it typed out professionally, or hire an estate planning specialist to help - but having one is much better than not having one. Nearly half of all Australians don’t have a will and when they die, their inheritance can be divided up in a way that isn’t desired. With a will, you can ensure that your loved ones are cared for. 02. Appoint Decision Makers & Executors Decision makers with power of attorney and executors can be critical to have if ever you become incapacitated or are no longer of sound mind. By delegating responsibilities to trusted individuals, they can make decisions regarding healthcare, the distribution of your assets, and manage your estate as you approach the end of life. For health care matters, this is referred to as an “Advance Care Directive” in Victoria and NSW and can help you pass away with dignity and the care of your appointed decision-maker. 03. Optimise Your Taxes & Superannuation There’s nothing certain but death and taxes, but complex or burdensome taxes can become a problem for inheritors without proper tax structuring. For example, your wife or husband might inherit your home but all of a sudden they may find it hard to keep up with property tax payments. Also do not neglect any superannuation that can be given to beneficiaries and the tax implications that may come along with that.  04. Prepay Your Funeral Arrangements Funerals can be very expensive, and they certainly aren’t an expense that your family may be able to make at a moment’s notice. Moreover, your religious beliefs may require your remains to be managed in one way or another, so to ensure that your passing is in line with those beliefs and your family can pay their respects it is highly recommended to prepay your funeral well in advance. Most of the time, you won’t know exactly when you will pass away, so paying for your funeral well in advance can provide you and your family with peace of mind when that day does come. 05. Update Your Will and Testament as Needed Life circumstances can change, which is exactly why you should prepare a will in the first place, but they can also change for your loved ones. From the time when you first wrote your will, one of your beneficiaries may have had children of their own or you may have lost a spouse or other loved one. Your will should be updated as needed so that your assets can be managed and distributed in the best way you see fit. Davlin Wealth Management Contact Davlin Wealth Management for estate planning and much more. Comments are closed.
|