A Will isn’t always the only way
You would have heard the saying: “where there’s a will, there’s a way”. This statement is usually used to encourage people who are losing enthusiasm for a task or goal.
But it also reflects the way many people feel about estate planning. They think that so long as you have a Will, you have a way to ensure your wealth is passed correctly to your loved ones. But this is not necessarily the case. Craig at HQB Financial Solutions understand the importance of Estate Planning which is a vital part of any financial plan. Contact Craig today on (02) 66993649.
The truth about Wills
A Will can help ensure the assets that form part of your estate get distributed according to your wishes.
But did you know that a Will typically only applies to personally held assets and therefore may not deal with a significant portion of your wealth?
For example, the proceeds from your superannuation funds and life insurance policies don’t necessarily form part of your Estate. They can pass directly to certain beneficiaries nominated by you or go to your Estate where they’ll be dealt with by your Will.
Also, some assets never form part of an estate, like jointly owned assets or assets held in a discretionary family trust.
To cover all bases, thorough estate planning (or personal succession planning as it’s also known) involves putting in place strategies that address all your assets, not just those covered by your Will.
Do I need a personal succession plan?
Another common misconception is that personal succession is only for the wealthy or the elderly. However, just about every asset you own and every investment you make has estate planning implications. As a result, personal succession planning is something everyone needs to consider, regardless of age or stage in life.
At a minimum, every individual should have:
- a current Will to distribute estate assets
- an Enduring Power of Attorney to cover situations where they’re unable to make financial decisions themselves
- appropriate superannuation and insurance beneficiary nominations, and
- appropriate arrangements in place to distribute or pass control of specific assets that are not covered by the Will.
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