You've worked hard for what you have today. Naturally, you want to make sure that you and your family benefit from it.
Planning for when you may not be here can help ensure your wealth is managed and distributed the way you intended.
What is estate planning?
Estate planning is the process of ensuring that your property, money and other assets are distributed according to your wishes after you die.
With the right planning, you can minimise the amount of tax your beneficiaries pay on their inheritance.
Options to consider when planning your estate:
Make a valid will
A will is a legal document that sets out how you want your estate to be managed and distributed after your death.
Without a valid will, a court-appointed administrator will distribute your estate according to state-based legislation.
There are specific requirements attached to creating a valid will, so consider having your will prepared by a lawyer to ensure your wishes are clear, concise and unambiguous, with no mistakes that might affect the distribution of your estate.
Enduring power of attorney
If you became incapable of handling your affairs, control of your assets could revert to a person appointed by a court unless you have an enduring power of attorney.
Even if you’re married, your partner still needs to be nominated to be able to make decisions for you.
By setting up an enduring power of attorney, you can be sure that someone you trust will make the important decisions affecting you and your affairs.
Speak to a lawyer about setting up a power of attorney, setting the terms and how they will apply.
Set up a trust
Establishing a trust, with a trustee who will distribute your estate to your beneficiaries, may be an option to consider if you have dependant children or other circumstances that may benefit from having you assets managed and distributed according to a trust.
Trusts can also be used to protect assets from dependents’ creditors or mismanagement.
There are different types of trusts and the area is complex, so it’s best to speak to a licensed financial adviser or lawyer.
Nominate a beneficiary
Chances are your HOSTPLUS pension is a large part of your wealth, so remember to nominate a beneficiary for the balance in your your pension account.
If you don’t make a nomination or your nomination is invalid, the balance of your account will be paid to your dependants at the trustee’s discretion.
The remaining balance of your pension plan can only be paid to your dependants or to the executor of your estate and there are different types of nominations to consider.
So speak to a licensed financial adviser or lawyer before you make a nomination to ensure your nomination is valid and right for your situation.