Understandably, discussions about what will happen once we are gone are not a pet subject for many. That is why many people put off writing wills and planning their estates until it’s too late.
However, it is very important to have a plan that leaves your family and beneficiaries with clear guidelines on the fate of your estate. It’s also important to note that Australia’s life expectancy is at an all-time high.
So, estate plans need to give greater weight to aged care needs in addition to other common estate planning goals.
10 Estate Planning Strategies
Begin with Wealth Management
Goals Good estate planning starts with a strategy on how to pool the wealth needed to have a successful plan. This involves knowing your assets, understanding your lifestyle, and knowing how you will spend your resources over time. So, awareness of everything happening with your estate is important, as well as serious consideration of how that will likely change in future.
Safeguard your Assets and Lower your Risks
The future always holds some uncertainty, and protecting your assets and controlling your risks is always a critical part of a good estate plan. To this end, you can change the structure of your investments and savings so that you can attain your goals even when unfortunate eventualities happen in the future.
Lower the Tax Burden your Beneficiaries will Get
Heavy taxes can put a dent on the wealth that your beneficiaries get in future. However, a trust can keep your children’s part of the estate safe even after divorce, bankruptcy, death or remarriage. Talking to a professional about debts and capital losses can also help lower future tax liabilities.
Use Transition to Retirement to Protect yourself and your Assets
Transition to Retirement is very useful if you have attained your preservation age and are still working. With TTR, you can reduce your working hours, start getting a regular superannuation income, safeguard your assets, and even reduce your tax burden.
Have a Plan for Leaving your Business
If you are approaching retirement age and run a business, you need to plan for what happens when you finally leave. Otherwise, without clear guidelines on its future ownership and management, the business could fail, become a financial liability, and even bring divisiveness within the family.
Protect your Estate through Insurance
The future is always uncertain. That is why having insurance to protect your assets is so important as you plan your estate. You don’t have to over-insure either, a policy that provides adequate coverage while offering good value for money is what is needed.
Be Careful with Superannuation and SMSF
A self-managed super fund might seem like a great way to safeguard your estate, but that is not always the case. Sure, superannuation can lower tax liabilities and improve control over investments and their risks. However, maintenance costs can be high, as well as non-compliance penalties. The trick is to work with an advisor for the best possible outcome.
Don’t Forget about Aged Care Fees
Even though the focus of your estate plan is to take care of your loved ones, you should spare a thought for yourself. As you age, you will need more care and the estate plan should have a layout of how these costs will be handled. A professional can offer all the required guidance on this with regard to increasing your Age Pension and so forth.
Keep your Will Up-To-Date
Things like family, assets, goals, and liabilities change all the time, and so should your will. So, you should update your will regularly or whenever a drastic change to your wealth or family situation happens. More importantly, involve a professional to advise you on how to lower your tax burden and better meet your estate planning goals while preparing your will.
Change your Plan as Things
Change Once you create an estate plan, your job is not yet done. You should keep updating and reviewing it as things change over time. Involve a professional so that changes with regard to beneficiaries, assets, liabilities, or laws are properly accounted for in your new estate plan.
If you need know more about real estate planning, reach out to us at The Farm Protectors. We are always eager and happy to help.