Estate planning is the process by which a person sets out to ensure that upon their death the assets they own personally, the assets that they control through companies or trusts and the assets to which they are entitled through, for example, a superannuation fund, pass in the most tax effective manner possible to their chosen beneficiaries.
Once upon a time, making a Will was all that was required but not any more. The increasing complexity of Australia’s tax laws compels a far wider consideration of the planner’s needs and a more thoughtful response to those needs if the benefits available to the planner under the law are to be accessed.
Even though Governments continue to make the accumulation and passing of wealth between generations more and more difficult and the financial and emotional consequences for a family left to cope with an unplanned estate are usually catastrophic, people still put their estate planning off as being too hard or not worth the cost. That view could not be more wrong and the purpose of this article is to help explain why that is.
Estate planning is not an exact science and changes in the planner’s personal circumstances and relevant laws means that regular review and reconsideration of plans once they are established is essential if that plan is to remain relevant and appropriate. Injury or death can occur to anyone at any time. Being prepared to deal with that possibility is the outcome good planning will achieve. |
