Estate planning is the process where you and your advisors (typically a lawyer and accountant) sit down and plan out an effective strategy to do the following:
- balance the risks of litigation on your estate;
- cater for disabled beneficiaries of your estate;
- provide for bankrupts (or those who may potentially be bankrupt);
- care for your underage children;
- exclude people from your Will who may have an entitlement to claim;
- take advantage of any tax concessions;
- set up structures to reduce tax thresholds applicable to the gift for your beneficiaries;
- plan out management of any businesses/companies during any period which you have lost capacity or after you pass;
- ensuring that particular assets reach the people that you want to receive the assets; and
- other common issues.
Estate planning will typically involve the creation of a combination of documents including:
- A last Will & Testament;
- Enduring Power of Attorney;
- Company Power of Attorney;
- Advance Health Directive;
- Testamentary Trust Will.
Estate planning also typically involves some transactions taking place during your lifetime including (depending on your circumstances):
- transfers of property;
- loan agreements;
- option to purchase agreements;
- mortgages on property;
- occupation & licence agreements;
- co-owernship agreements;
- other similar documents.
Perhaps most importantly, estate planning is a considered process designed to maximise the benefit of your estate for your intended beneficiaries.
Some Common Questions that Good Estate Planning Will Deal With
- What if I'm married but wish to exclude my spouse from my Will?
- What if I'm married and separated but not divorced (or have completed a property settlement) and want to exclude my spouse from my Will?
- What if I want to exclude a child or grandchild or stepchild from my Will?
- Do I need to provide for stepchildren or ex-stepchildren in my Will?
- What if one of my children (or intended beneficiaries) are bankrupt or soon to be bankrupt? Is there a risk to my estate?
- Can my daughter-in-law/son-in-law claim part of my estate or take it from my son/daughter?
- Is there a way to get a better tax rate for my children when they inherit my assets?
- How do I ensure that my disabled child is cared for after I die? Are there any legal protections and documents I should set up?
- I have loaned a lot of money in my life to one of my children and none to the other - do I need to deal with this in my estate planning?
- My son had just split up from his wife. If I die, will my estate be part of the property settlement or will it go to my daughter-in-law?
- I'm worried that my child's partner will split up with him after I die and take part of my estate in a property settlement. Can I do anything to protect my assets for my child?
- I have multiple companies and trusts and am not sure how I should split these up fairly for my children.
