What’s your family succession plan?

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Estate PlanningWhile often difficult, having discussions with your family about estate planning, and how your assets will be distributed when you die, is so important. Here are just some of the key building blocks to consider when looking to create your own family succession plan.

Have a valid Will…

There are many problems that arise if you don’t have a valid Will – problems that can cause a great deal of distress to your family when you die.

A valid Will details in writing how you wish your assets to be distributed, and must be dated and witnessed by two people who are not your beneficiaries.

Not having a Will, or having one that is poorly worded, could mean that your assets won’t be distributed according to your wishes, as well as causing delays, additional costs and possible tax implications.

After establishing a Will, it’s also important to see it as a ‘living document’, one that should be updated regularly as your financial, health, lifestyle and family circumstances change.

Power of attorney…

A power of attorney gives a person, or a trustee company, the power to manage your financial and legal affairs while you’re still alive.

Giving someone you know the ability to make these decisions, rather than a court, gives you peace of mind that you’ll be taken care of when you’re no longer able to manage your affairs on your own.

There are different types of powers of attorney, which can also depend on which state you live in, so you should get legal advice on what best suits your situation.

By planning ahead before an emergency eventuates will give you and your family the opportunity to review all the options, which can help you to avoid a significant legal and financial burden should something happen.

Enduring guardianship…

Similar to a power of attorney, an enduring guardianship allows you to appoint someone that can make important lifestyle decisions, or approve specific medical treatment, on your behalf when you’re incapable of doing so.

Enduring guardianship is extremely broad, giving you and your family the flexibility to include the functions that are most important to you.

A person that’s well known to you and your family, but has no financial interest in your estate, is often a good choice to be your guardian.

Buy/sell agreement…

If you have a business partner, it’s important to have a strategy in place that will ensure your share of the business is passed onto your estate as quickly and as efficiently as possible.

One such strategy is a buy/sell agreement, which uses a life insurance policy to pay for the future purchase or sale of shares in your business.

These agreements are usually triggered by a specific event, such as disability or death, with the proceeds from the insurance policy helping to transfer the full value of your share in your business to your estate.

Get financial advice…

Estate planning is a very complex area, and one where it’s easy to make decisions that seem appropriate at the time, but can prove costly in the long run.

Engaging an experienced financial adviser will help you and your family to understand all of your estate planning options, and allow you to create a plan that meets your needs.

If you enjoyed this article feel free to share it or contact Robert Bauman on 1300 416 590 to
discuss further with regard to your personal situation.

Disclaimer: Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFSL 244252. The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out.

Robert Bauman is a Director of Straight Money Talk Pty Ltd, ABN 63 082 454 730, ASIC Authorised Representative No. 40644. Straight Money Talk Pty Ltd atf SMT Trust is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd, ABN 61 094 529 987, an Australian Financial Services Licensee number 244252.

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