Successful estate planning

Successful estate planning — Do it right and early

As the baby boomers move to retirement and the hereafter, we are already seeing an enormous transfer of wealth to the following generations. Yet family structures have become more complex so that it is not a simple task to create appropriate plans.

Estates can sometimes need to continue for many years after death.

Getting the right advice, well in advance of major life events, is critical. Complexity often arises when people realise their Will only deals with passing on assets they own in their own names.

Wealth accumulated via family trusts, self-managed super funds and private companies is where additional attention is needed as it is sometimes incorrectly perceived these structures cease to exist upon death and the assets transfer to the estate of the deceased. Modern blended families add further considerations around adequate provisions and attempting to ‘keep the peace’.

A raft of carefully thought through decisions need to be made ahead of time to achieve an effective estate plan. Such decisions need to be cognisant of often overlapping (and sometimes conflicting) tax, superannuation, company and trust law.

Getting it wrong can cause a world of angst for the people you want to benefit when you’re no longer here. Careful planning can mean many years of tax-effective financial support for your beneficiaries, a legacy many want to leave.

My top tips include:

1. Get a handle on where your wealth is held, make a diagram
2. Think about who you want to take control when you’re gone
3. Identify those you want to benefit (and when)
4. Get professional help, early.

Above all avoid leaving this one in the ‘too hard basket’, there is too much at stake.

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