Today you can change the future for your family and your loved ones, simply by creating an estate plan that takes care of them, when you are no longer able to. Not many decisions you make today can have such far-reaching and positive outcomes – which makes your will one of the most important documents you can ever plan and sign.
The importance of estate planning
Estate planning is a process that takes place while you are still alive and is the process of arranging your financial affairs in such a way that the legacy you leave is as large and well-structured as possible. Everyone regardless of their age or financial position should have an estate plan to maximise their assets, reduce estate costs and taxes and streamline the winding up of their estate so their heirs can be paid out as quickly as possible
The 7 points of a good estate plan
- Make a will that complies with legal formalities to ensure there is no uncertainty surrounding it and that it is swiftly executed.
- Avoid any ambiguity or dispute in your will as any lack of clarity is grounds for disputes. Many people might be tempted to go the DIY route using a will template, but ambiguity in wording can lead to divisive and expensive family feuds that could have been avoided with a professionally drafted will.
- Choose your executor carefully. Ensure they are someone you trust and can depend on to wind up your estate quickly and professionally.
- Consider your minor children’s needs and ensure you nominate your choice of guardian for your minor children. Ensure their inheritances are held in trust for them, with your choice of trustees.
- Plan to reduce costs and taxes. A professional will be able to assist you with minimising estate duty, executor’s fees, and taxes – which include income tax and capital gains tax.
- Plan for liquidity by ensuring your family has money to live on while your estate is being wound up. You don’t want the executor to be forced to sell an asset if there is insufficient cash in your estate to meet the various costs and taxes in winding it up.
- Review your estate plan regularly. Personal circumstances change, laws change and taxes change – a good rule of thumb is to look at it every 12 months.
No estate planning checklist is complete – so to tailor your plan to your individual needs, speak to our professional estate planning team today. We offer an all-inclusive service – from planning your estate to drafting your last will and testament to the administration of your estate.
We respect that the planning of your estate is a very sensitive issue and we take a personal interest in your affairs – ensuring the legacy you leave behind is true to your intentions.