Estate Planning is an important wealth management exercise. Estate Planning outlined provides links to a series of articles to guide in the process. Testators use estate planning to optimise the benefit derived by beneficiaries from their distribution of accumulated wealth they pass on.
Estate Planning outlined
What is an Estate Plan?
An estate plan is a strategic approach to the administration and distribution of the assets of an estate.
An Estate Plan is a vital element of every family wealth management plan. It is also one that is little understood.
Estate planning is too often considered completed once Wills (and Enduring Powers of Attorney) are in place. These are indeed key documents in an estate plan. However, other documentation and arrangements as to administration of your estate are also important.
An effective estate plan has the potential to optimise the asset value distributed from the estate of a deceased person. It can also obviate unnecessary hardship for –
- the people left to administer it, and
- those who are intended to benefit from it.
Estate Planning benefits?
Pitfalls in estate planning are avoided when potential issues are appropriately identified. Timely planning may highlight opportunities to enhance the value of an estate, to the greater benefit of the ultimate beneficiaries. Estate Planning professionals have identified three key considerations to an effective estate plan:
- The right funds. Ensure that there are adequate funds provided to meet your objectives; and that they are put into –
- The right hands. Providing for eligible estate assets to go where you want them to. Also, for control of those assets to pass to the beneficiaries in an appropriate way; having received them at –
- The right time. Ensuring all nominated beneficiaries will be old enough (and presumably mature enough) to manage their inheritance by the time they attain control. Also, that funds will be available in time to meet ‘estate liabilities’ and obligations (including bequests).
Preparation of a well-structured estate plan requires –
- detailed analysis of your financial position and supporting resources, including
- information about assets held – and
- in whose/ what names they are held, ensuring
- that only eligible estate assets are bequeathed.
More about Estate Planning…
This is the first in a series of 13 articles on the topic of Estate Planning: further articles in the series seek to bring clarity to some of the issues and implications to be dealt with in fulfilling the three key considerations above – and to prepare you and your family to understand the final plan when drafted. The remaining articles consider –
- Estate planning flexibility;
- Asset protection using Estate Planning;
- Superannuation death benefit nominations and Estate Planning;
- Estate planning and Business Succession planning;
- Capital Gains Tax impact on estate planning;
- Estate planning and family loans;
- Estate planning and company-owned assets;
- Estate planning for a SMSF trustee;
- Estate planning and superannuation assets;
- Estate planning with a testamentary trust;
- Estate planning for younger children; and
- Estate planning dependent on a valid Will.
Note: Our associated articles don’t deal with all of the people you may appoint to implement your estate plan. Appointment of executors, trustees and possibly guardians are also important considerations. Whilst these are important appointments, the appointee selection is not critical to the design and structure of an estate plan. As the issues with them are more personal than financial, we leave their consideration to you. Suffice it to say that your estate planning lawyer may help you in this consideration.
Where can I get help with Estate Planning?
If this Estate Planning outline has raised interest for you, the Continuum Financial Planners Pty Ltd Estate Planning service offers clients:
- working with them to prepare the detailed information required for their appointed estate planning specialist lawyer; who can then
- consider the client’s individual detail in light of their estate planning experience so as to design
- a plan appropriate to the client’s present and known likely circumstances; and where needed
- provision of access to our referral connections of such professionals. We will refer you to professionals with recognised expertise on circumstances such as your own.
To avail yourself of this service, make an appointment with one of our advisers, by
- phoning our office on 07-34213456; or
- at your convenience, using the linked Make A Booking facility.
(This series was first posted to our website over a period from late-2011 through early-2012. Articles within it have occasionally been refreshed and/ or updated: this one, most recently in January 2025.)
