If you have assets, it’s essential for you to have an estate plan. Estate plans shouldn’t be seen as a fancy way of passing on your belonging. It represents your life work and with this great preparation should be taken. It allows children to be cared for and belongings passed on to the correct individuals. Your estate plan will change over time. This is why it recommended that your plan inlines yourself with your life goals at the time.
When do we start estate planning?
Now. Young or old, there is never an incorrect time to start planning your estate. It removes the burden on your family and friends if unfortunate circumstances occur.
What should it include?
When planning you should think about the following
- Insurance policies
- Power of attorney
- Funeral planning
- Carer for children
You should also include a list of your liabilities.
These can include:
- Credit card bills
- Income tax
I’ve started, now what?
First things first are to categorise your assets. From property, financials and ownership. You will also refer to who you like this items beneficiary to.
Family to friends, make sure to write these down in your will. Its ideal to take into account the individuals you would like to receive these items. Be specific, Any details or clarifications should be addressed to.
Writing your will is something you can do yourself. I do recommend the financial advisors at Smart finance. Why? Having accredited advisors do your estate planning ensures that it can be executed.
I have kids?
No need to stress. If you have children that would need care, you will need to create a trust. Having a trust allows for your children to have benefits outside of your will. Having it separate from your will also allows better control over who gets what, how and when. You will have to nominate a trustee so make sure to pick someone you trust and who is savvy with their finances!
How often should I update my estate?
Estate planning is the first part. Keeping it updated is the Second. Updating your will is essential. Why? Because you don’t want your most trusted assets to land in the hands of someone who you haven’t spoken to in 10 years. Updating your estate helps keeps your finances stay in line with your current life. So if you buy a new house or shares, make sure your will reflects these changes.
We understand Estate planning can be difficult. That’s why you should contact the financial advisors at Smart finance. When you sign up at Smart Finance you can receive a free consultation with a financial planner.
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