For a number of years, we have been reminding our Clients to start the conversation on considering their Estate Plan and what they would like to see happen to their assets, their entities (including businesses) and their super before and after they die.
Believe us, it is not an easy discussion and can take some time to gain traction. But we believe it is a discussion we all need to have at some point, even if it is in bite size pieces.
As your trusted advisor, we are well placed to facilitate the process and act, primarily as the project manager, for the efficient and effective drafting of your Estate Plan.
So, what does an efficient and effective Estate Plan look like?
In our experience, unfortunately there is no standard template of what one looks like but more so what it needs to consider.
One thing is for certain is that is much more than just a Will.
It requires a full understanding of your financial and personal circumstances and wishes in order to ensure that when those wishes are eventually acted upon, and at some stage they will be, that the consequences are known, expected and manageable.
A clear and powerful statement taken from Australian Succession Law: Commentary (Thomson Reuters) 2013 written by Haines QC, Englefield, Harland & Worrall is:
“The consequence of not having an estate plan ought to be considered so that it can be contrasted to what an estate plan can achieve.
(a) First, a person without an estate plan is unlikely to have a will, or if they have a will, there is a high risk that they have a “simple” will that does not reflect a well-considered examination of their needs or their views. If they do not have a will, the distribution of their estate is subject to the intestacy provisions in the relevant jurisdiction or jurisdictions….
(b) Second, in relation to Powers of Attorney, they will have no-one in the position of an
Attorney to act for them in business and financial affairs when they are either away from their normal place of living or when they lose capacity;
(c) Third, in relation to their health, medical and lifestyle decisions, they will have no-one to act for them if they were to lose capacity;
(d) Fourth, in relation to their superannuation, family trusts, companies or other business structures, the effects on death will be unconsidered, and the effects on these structures and their family members from their death may not be what the person assumed would happen or wanted to happen if they had taken time to consider and reflect.”
Christmas is a time when many of us finally have the time to think about ourselves and our families, meaning the New Year can be a perfect opportunity for you to consider the effectiveness of your current Estate Plan.
Why not make updating your Estate Plan one of your New Year’s resolutions?