What is estate planning?

Estate planning seeks to ensure your estate is passed on to your intended beneficiaries in a financially efficient and tax-effective way. Used extensively in the days of death and estate duties, which no longer exist, it remains an important strategy today. This is because the choices you make can have significant implications for tax purposes, as well as how and when distributions can be made to some beneficiaries.

Creating a sound estate plan requires the involvement of legal and financial specialists.

Is a Will really necessary? 

Everyone should have a written Will, even if only as a safeguard against the unknown. While it can be upsetting to think of squabbling among family, the reality is that when someone dies, arguments over money, assets or bequests are becoming more common. In some cases, this can cause a complete breakdown in relationships.

Remember, if you do not make a Will you die “intestate”, which means that the public trustee in your state will be appointed to look after your affairs. State laws may result in an unequal or unintended distribution of your estate. It is also important that your Executor knows that you have a Will and where it is kept.

Should I give someone a Power of Attorney?

If you lose the ability to look after your financial affairs, due to an accident or age, then someone will inevitably be required to take control of your finances. If you don’t appoint someone to manage your affairs, then in the event that you lose this ability it will be up to a court or tribunal to decide who takes this control.

Giving a person a Power of Attorney means you authorise that person to take over management of your financial affairs and act on your behalf. It’s a big responsibility, both for you in choosing and for the person you delegate to, should they ever be required to act. So, choose someone you trust absolutely, who knows you and what you want.

To find out more information on Estate Planning, contact us at: wealthcreations@blackmoreinvestments.com.au