Setting goals and writing them down to aim for what you want to achieve financially in your lifetime is a proven strategy. If you have family, then your goals will probably include and consider your loved ones. With Estate Planning, you can even do more than that. You can make sure that the goals you and your family have been striving for will also be supported in the event of an unexpected death of the head or breadwinner of the family.
Every year during the holiday season in Australia the media is focused on how big the road toll was during this period. Whilst media can be obsessed with statistics, let’s not forget that for every number, a life or the life of a whole family can be severely impacted by road fatalities. The loss of loved ones can never be fully be compensated financially.
However, making sure that your family is looked after in ANY event is something that can be achieved with Estate Planning, especially when you are a business owner and have a complex asset structure.
The purpose of estate planning is to help us achieve our personal and family goals even after we die. Estate planning ensures that your wealth will go to those you want it to go to, so that the family can achieve their goals even after you are gone. What’s more you can even significantly reduce the tax burden for your family through a proper estate planning process, thus ensuring that your heirs get a larger inheritance. There is untold peace of mind if you can save and dispose of your wealth to your own advantage, or that of your family. This kind of planning, begun early in life, can help provide financial security for a family throughout several generations. Here are the top 5 five goals of estate planning:
- Live life responsibly: Living your life responsibly means providing not only for yourself (and your spouse and family, if you are married), but providing for others according to your values. It also means preparing for the possibility that you may become unable to provide for yourself, your family, and others.
- Leave your wealth and legacy on your terms: In order to pass on your property in the way that you want to, you must provide for both administration (someone to do the paperwork and ensure that your desires are completed) and disposition (the decision of who gets what) of the assets.
- Make sure the kids are looked after: For most parents, the issue of guardianship is one of the most crucial decisions of the estate planning process. Who will raise your children should you die? You can provide for the guardianship of children who are still minors by thinking ahead.
- Minimise authority involvement: Probate is the legal process by which an asset’s title is transferred. It can be avoided or even used strategically to your families advantage.
- Decrease or eliminate taxes: Through proper estate planning, you can decrease or eliminate the taxes that must be paid on your estate.
Estate Planning can make all the difference for you. While we can probably never avoid accidents, injury or sudden illness, making contingency plans for the “What IF” scenarios is a smart thing to do and can avoid a lot of further heartache.
Don’t wait until it’s too late, click here to contact the Team at Straight Money Talk Pty Ltd for a FREE “Money Health Check” or call us on 1300 416 590. We can help you to get started and work through your financial and business structures and assist you with complete Estate Planning services, including working with your solicitor and any other third parties.
Copyright © 2012 Robert Bauman Disclaimer: This information (including taxation) is general in nature and is for Australian residents only. It does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.