3 Basic Considerations For Estate Planning

Estate planning is a roadmap for what is to happen after you die. This is not a fun topic, but it is essential to make this plan if you want to make sure your dependents are taken care of. It not only accounts for your dependents but also states how your assets are to be distributed and how you intend to be buried. Make sure you hire an estate lawyer to help you navigate this complex legal process. Here is a look at the basic considerations for estate planning.

Make a Will 

If you die without a will, you stand the risk of your assets being subjected to intestacy laws. This means your assets will not be distributed the way you want them to. Making a will and updating it regularly ensures your loved ones are cared for as you intend.

Part of making a will also involves assigning a trustee. The trustee will be in charge of distributing your assets after you pass away. Your will also lays down your wishes regarding funeral and burial arrangements. Your estate planning lawyer will offer guidance and advice on making and updating your will and appointing a trustee.

Superannuation and Death Benefits

It is crucial to understand superannuation and death benefits when making a will. Assets that are in a superannuation fund cannot be automatically part of your estate. Without a death benefit nomination, the trustee to a will can use their discretion to pay the deceased's benefits to any of the superannuation dependents.

However, when there is a death benefit nomination, the benefits will be given to the nominated beneficiaries. It is essential to seek advice on the need for a death benefit nomination. This will ensure your superannuation benefits are passed to only the nominated beneficiaries. You should also ask your estate lawyer about the tax implications affecting your superannuation fund.

Manage Tax Implications

You need to plan how your beneficiaries will receive assets after you pass away. The way you distribute assets can affect tax implications like the Capital Gains Tax. Your lawyer will advise you on how to manage tax impacts.

For example, you can use insurance policy proceeds. These proceeds are tax-free if they are paid to your dependents through a super fund. A capital gains tax liability can also be avoided if the beneficiary of your estate receives assets instead of the proceeds from selling your assets. Another way an estate lawyer can help you manage tax implications is by using a testamentary trust in your will.

For more information, contact an estate planning or wills lawyer in your area.