It’s probably not something you look forward to, but estate planning does play an important role in protecting the wealth you’ve worked hard to build and ensuring that it is distributed according to your wishes.
Getting your legal and financial affairs in order may be relatively simple or it may involve some more specialised planning. Either way, it can be a little easier if you understand more about the various aspects you might need to consider.
Estate planning involves much more than just having an up to date Will, although that’s certainly an important factor. Here are some questions you may want to think about.
Do you need to:
- Create or update your Will? This is a legally binding document that records your wishes for your estate and affairs.
- Review or update your life insurance policies? Having the right amount of cover to provide financially for your dependants and cover any future financial obligations can be important for your peace of mind.
- Nominate or update your beneficiaries? Super doesn’t automatically form part of a Will.
- Consider appointing a Power of Attorney (POA) and/or enduring guardian? These documents grant someone a legal authority to act on your behalf for financial or health matters if you’re no longer able to manage your own affairs.
- Think about any aged care plans? It may make sense to think about these sorts of arrangements sooner rather than later so you’re well prepared.
- Leave any pre-planned funeral arrangements? Setting aside funds to pay for funeral expenses provides peace of mind that money is available for any funeral expenses, removing the burden from your loved ones.
It’s important that any paperwork or records of your estate planning activities are kept in a safe place and that the executor of your Will or a trusted family member or friend knows where to find this information if something happens to you.