Estate planning is an important part of your overall financial plan to protect the wealth you have accumulated for the benefit of your family.
This includes ensuring you have considered and implemented the following aspects:
A common misconception is that a person's assets will automatically pass to a spouse or family on death. However the following assets, which can be of substantial monetary value, may not necessarily form part of a person's estate:
If there is no Will, there are different rules depending on the value of the estate.
Without an appropriate record of how you intend to distribute your assets, there is the risk that intended beneficiaries may receive little, or none, of your estate. Estate planning is a complex area and appropriate professional advice should therefore be obtained before making any decisions in this area.
In planning your Will, it is important to consider the following factors which will form the basis of your instructions:
The Executor
The Executor is responsible for collecting and selling assets, paying liabilities and distributing proceeds from your estate to beneficiaries.
The Executor should be a person with time to handle your estate after your death and also someone with business acumen, or has access to people with business acumen. Usually two are selected either to act together or one to be the substitute for the other in the event the first is unable to act. Spouses, siblings, close friends or professionals are the general choice. Please provide full names (including middle name) and addresses of the persons selected.
Power of Attorney?
A Power of Attorney appoints a person as your Attorney to deal with your legal and financial matters whilst you are alive. The choice of Attorney is yours however it should be someone that you trust as they will be able to deal with all of your legal and financial matters on your behalf. A financial 'enduring power of attorney' is a legal document that remains valid even if the Nominator becomes mentally incompetent.
Attorneys can be appointed in a variety of ways. If more than one Attorney is appointed, the document can stipulate that they may act jointly or severally. If they must act jointly, the Attorneys must agree on any decision they make. If they may act jointly and severally, an Attorney can make a decision by themselves.
Advanced Care Directive
Advance Care Directives empower you to make clear legal arrangements for your future health care, end of life, preferred living arrangements and other personal matters. It replaces the former Enduring Power of Guardianship, Medical Power of Attorney and Anticipatory Direction with a single Advance Care Directive form.
An Advance Care Directive allows you to appoint one or more substitute decision makers to make these decisions on your behalf if you are unable to do so in the future.
Guardian of Minors?
The appointment of a Guardian is a very important decision as the Guardian will be responsible for the care of your minor children if both parents pass away while your children are under 18. Often the Guardians are different to the executors so that there is a check and balance. Please think about who you might want to act in this role. If you choose a couple select one party rather than both in the event there is a separation.
Non-Estate Assets?
It is also important to deal with assets that may be controlled by you, but are not held in your personal name. A statement of wishes may be required to deal with such matters. The statement of wishes provides direction to the Executor/s to use their powers as best as possible to ensure that:
Your superannuation entitlement generally does not form part of your Estate. If you do not have a Binding Death Benefit Nomination, the trustee of the superannuation fund can decide who receives your entitlement upon death. Therefore, we recommend that you consider making a Binding Death Benefit Nomination as part of your Estate planning considerations.
Read further about estate planning for businesses in our News Articles on Smart Estate Planning for Business.
Discuss Further?
If you would like to discuss this, please get in touch.
Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
Quick Links
Acknowledgement of Country
We acknowledge the Traditional Owners of the land where we work and live. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who also work and live on this land.
Let's chat.
For a no obligation meeting about our many services, please use this form to submit your enquiry.
We will respond to you as soon as possible.
Thank you
Thank you for your enquiry with Brentnalls SA.
We will respond to your enquiry as soon as possible.
Click here to return to the Home Page.
Kind regards,
The Team
Brentnalls SA
Our Location
255 Port Road
HINDMARSH SA 5007
PO Box 338
Welland SA 5007
"We feel confident in our financial decisions and can focus on growing our business with peace of mind."
John & Barbara Kalleske
Kalleske Vineyards Pty Ltd