Estate planning is about protecting your loved ones and ensuring your wishes are carried out if you pass away or lose the ability to make decisions. Estate planning involves considering who you will gift your estate to, who will care for your minor children, and who will make important medical and financial decisions on your behalf if you could not do this yourself.

Why Estate Planning Matters

A well-prepared estate plan:

• Safeguards your assets for your chosen beneficiaries
• Appoints trusted decision makers for financial, health, and personal matters
• Reduces legal complications and stress for your family

Succession planning is often complex and involves thorough consideration of both the legal aspects and your personal circumstances.  Professional legal advice is highly recommended to avoid undesired outcomes.

Essential Estate Planning Documents

Preparing an estate plan prevents conflict, provides clarity and offer peace of mind for you and those you care about most.

There are 3 key documents you need to consider when preparing your estate plan.  These are:

1. Your Will

A Will addresses key decisions on what will happen in the event of your passing, including:

• Distribution of assets – specify how and to whom your property and belongings are to be given to
• Executor – appoint someone who will be responsible for distributing your assets and finalising your affairs
• Guardian for children – name a guardian for your children if they are under 18
• Trustee – appoint someone to safeguard your assets on behalf of your beneficiaries if they are under 18

An important part of this process is actually understanding and considering what should be and is in your estate and what your Will can and should deal with.

Remember, a person who loses legal capacity cannot create a Will or consider an estate plan. Preparing your Will when you can ensures your wishes are respected and your estate is protected.

2. Enduring Power of Attorney (EPOA)

An Enduring Power of Attorney allows you to appoint one or more people to make personal, health and financial decisions on your behalf usually if you lose mental capacity. Like a Will, an EPOA must be established while you have legal capacity.

An EPOA does not include detailed medical treatment instructions. If you have strong views on your medical treatment, a separate document known as an Advance Health Directive can be completed.

3. Advance Health Directive (AHD)

An Advance Health Directive lets you outline your preferences for medical treatments and procedures if you become unable to make decisions. The document is designed for you to provide specific details on your healthcare in various scenarios.

4. Superannuation

Your superannuation does not automatically form part of your assets. To ensure your superannuation is distributed in accordance with your wishes, you should consider completing a Binding Death Benefit Nomination (BDBN).

Special Considerations for Business Owners and Trustees

It is vital to plan who will take over your roles and responsibilities if you lose capacity or pass away if you are a:

• Company director
• Trustee of a trust
• Trustee of a self-managed superannuation fund

Start Planning Today

Don’t leave your loved ones vulnerable or risk losing control over your future. Act now to ensure your wishes are respected, your family protected and everything you’ve worked for safeguarded.

Every day without an estate plan is an unnecessary risk. Contact our professional Wills and Estates legal team today to review your current plan or get started on preparing one.