08 Feb Helping you plan your future.
Living in Melbourne or anywhere your present time is the best time to consider estate planning, should be done sooner rather than later. It is an overwhelming process; even an emotional one and can turn into a nightmare if not planned ahead of time. One should be aware of the basics of estate planning to avoid costly mistakes. Yes indeed this term is more complicated than it may seem, it is a maze of policies, laws, taxes, will, and emotional turmoil. Without estate planning, you are in for a horror story of a lifetime!
Estate planning is basically the formation of a framework which includes; ownership of your assets in case of your incapacitation or death amongst your heirs and beneficiaries and the settlement of your estate taxes. The details involve the preservation, management, and distribution of assets after your death or in the account of being incapacitated the management of properties and finances. Assets of an individual may include house, car, paintings, pension, stock, and debt. Assets of a businessman maybe lands, factories, and stocks etc. One can have many reasons to set up estate planning such as; providing for surviving family, preservation of business, land and wealth, and contribution to charity. Asset protection planning is becoming a new trend as it provides a comprehensive framework for your estate and financial plans.
There are many phases in estate planning in Melbourne and we will break it down for you as much as possible. Firstly you have to write a will. It is a legal document in which instructions are recorded as per your wishes regarding how best you want to manage your assets. The will is validated in the court and an executor as per mentioned in the will is appointed who takes care of your wishes left in the will. The process of probate is court supervised. After the appointment of a legal representative, it falls on the personnel to complete all taxes related jargon, distribute assets and follow up on any legality that may come up. Consider a separate thorough plan for paying taxes for your estate by setting up trust accounts. Revise and update any insurance plans you may have. Although optional but beneficial would be establishing a charitable cause which can help in tax reduction. Lastly, appoint a good POA to guide other assets and investment.
Are you thinking of taking up this monumental task by yourself!? One wrong word or a missing signature can invalidate your well thought out estate plan and then you are left in a mess that you were trying to avoid in the first place. This is not somewhere you should be a miser. Melbourne like any other city has estate laws and just like any other city or country in the world they are not only complicated but expected to adhere too. When we say complicated we mean; what can or cannot be in your will, who can or cannot be your representative and or witness, guides to setting up a trust or medical or financial power of attorney. An estate lawyer can guide you on life insurances policies to assist in your shares in a business. They can provide you a plan in which you and your beneficiaries would have to pay less tax. If you are receiving any Centrelink benefits, it is good to maximise it through estate planning Melbourne, managing split family issues is their forte and they can give valuable counselling on superannuation.
Although each estate plan is different all of them have similar mistakes. Make sure you understand the basics of your plan, sit and discuss with your estate planner ask for a walk through step by step and be satisfied as this is something not to be rushed. Regularly update your beneficiary list otherwise assets can be distributed unfairly and a mess will be created. Keep in mind and review the ownership of your assets according to estate law and your will. Update and transfer your assets properly to your trust, follow up on it. Remember to appoint one financial power of attorney and one medical director. With any important change in your life such as the death of a beneficiary or fluctuation in your net worth update your estate plan. All of these mistakes can be very costly to you or to your dear ones and to avoid them all you have to do is have a good estate lawyer which you can hire from Goodman group lawyers and effective communication is the key.