Estate Planning

What Is Estate Planning?

Estate planning is considering the amount of assets you have acquired and ensuring they are transferred to your preferred beneficiaries after your death in the most effective way and in accordance with your wishes.

Estate planning incorporates:

• the preparation of a Will (and appointing an executor to look after your affairs – see the role of an executor;
• the preparation of power(s) of attorney;
• establishing a discretionary trust(s).
• consideration of your superannuation;
• transferring property during your lifetime (in certain circumstances).

As part of your estate plan, consideration is given to the value of your assets, the personal circumstances of your beneficiaries, any business or trust structures in place and superannuation funds.

Superannuation

Superannuation death benefits do not necessarily form part of your estate upon your death to be distributed under the terms of your Will. The only time they will form part of your estate is if there is a valid binding nomination in place (or a non-lapsing nomination), directing the trustee of the super fund to pay the death benefits to the estate, or where there is no binding nomination, the trustee exercises a discretion to pay the death benefits to the estate.

For you as a will-maker to be fully informed about the assets that form part of your estate and consideration of where your superannuation funds will be paid is vital.  Whether funds are paid into your estate or directly to certain classes of allowable dependants under superannuation legislation needs consideration. Many factors need to be taken into account such as the age of dependants, whether a subsequent marriage is involved, and who the appointed executor or executors are.

Without review of your superannuation (which is often a substantial source of funds) as part of your estate plan, unintended outcomes can result after your death.

Who needs an estate plan?

Anyone over 18 years of age who owns an asset requires an estate plan to ensure wealth is passed onto beneficiaries in accordance with your wishes.

It is especially important to consider an estate plan if:

• you are married, are in a domestic relationship (including same sex), or separated or divorced from those relationships;
• you have children (including adopted and step-children);
• you have family members with a disability or special needs;
• you have a family trust, self-managed superannuation fund or company;
• you have recently bought or sold major assets;
• you are buying, selling or operating a business.

At KMK Legal we can assist you establish an estate plan. We also have affiliations with accountants and financial advisers who can expertly advise you on the most tax effective estate plan for your future in retirement and for your estate.