Estate Planning – What do I need to think about?

Estate planning is the deliberate planning for the future management of your assets if you become unable to manage them for yourself. This is an important part of your retirement planning and involves making some crucial and sometimes difficult decisions. You need to consider making or updating your will, granting a power of attorney, setting up trusts etc., to ensure that your estate is divided according to your wishes while minimising the taxation burden to your beneficiaries. The decisions you make about your retirement income will also affect your estate planning decisions.

Things to consider include:

• Do I spend all my capital during my lifetime or do I arrange my retirement income so some capital is left to my beneficiaries?
• Do I need to make or update my will?. This can be as easy as a DIY will from your newsagency, but it is usually worthwhile speaking to a solicitor or Public Trustee to ensure that your wishes are fully detailed and understood. Talk to your financial planner if you need assistance.
• While I think I will be healthy forever, what would I do if I could not manage my own affairs? Should I appoint a Power of Attorney while I am still healthy? There are considerable risks with giving someone else the legal right to make decisions on your behalf. It is important that you speak to a solicitor about the type of Power of Attorney you should have and who you should trust with this responsibility.
• What about my superannuation beneficiaries – now my children have grown up do I need to change my nominated beneficiaries?
• What happens to money still in superannuation if I should die? Superannuation is not covered by your will so have you checked your nominated beneficiaries are updated?
• I would like to get a pension – can I qualify and still leave something in my estate?