Estate planning – the basic essentials


Estate planning – the basic essentials

It is generally believed that death is final. However, a grieving family knows only too well that the death of a loved one can trigger events that may drag on for years afterwards, especially when it comes to sorting out the estate of the deceased person. Outlined below are some suggestions that may help reduce the burden on those you leave behind.

Prepare a will.

A properly prepared will is one of the crucial elements of your estate planning. Your will should not only state how your assets are to be divided, it should also nominate an executor who will be responsible for carrying out your wishes. When preparing a will it is important you make adequate provision for your dependents, and clearly document the reasons for your decisions to help minimise the risk of your will being contested.

Consider an Advance Health Directive.

An Advance Health Directive is another important tool in the estate planning toolkit. It enables you to give detailed instructions in relation to your health care, including decisions on any treatment you wish to receive or refuse if you are incapable of communicating those instructions.

Establish a Power of Attorney.

Whilst a will deals with your estate upon your death, Powers of Attorney are designed to deal with your affairs while you are still alive. Powers of Attorney enable you to appoint an individual to deal with your affairs if you become incapable of making your own decisions. They can be as wide-ranging or as limited as you require or desire.

Appoint a guardian for children.

If you have young children, appoint a guardian to care for them. In doing so, you can provide that guardian with guidance about your child’s upbringing, and make provisions for your children’s financial future using the most tax-effective means available.

Make binding death nominations.

It is also important that binding death benefits nominations are made on superannuation and retirement income stream products as they ensure these funds bypass an estate, and in so doing, be excluded from any claims against an estate. And make sure you keep them current.

Cover those assets not covered by your estate.

One of the most common mistakes made in estate planning is leaving no instructions for those assets not covered by your estate, such as assets held in trusts and companies. Separate provision needs to be stipulated to ensure that control of these assets passes on to those you intended.

Other estate planning mistakes to avoid include:

  • Writing an informal will and not having it witnessed – or having beneficiaries as witnesses;
  • Not reviewing or updating your will on a regular basis;
  • Not telling anyone where your will is located.

This list covers important aspects to consider, however professional advice should be sought to tailor your estate plan to your individual circumstances. Then you can get on with living your life.


Relates Post: 

Top 5 Life Events to Review your Will

Related Video: 

Review Will – What Life Events trigger the need for a review? from Prime Financial Group on Vimeo.


This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.



Start planning your future with Prime.

Prime: A complete Wealth Management & Accounting Advice Experience

About the Author:

Prime is an Integrated Wealth Management Firm for business owners and family groups. Prime’s goal is to become the Premier Partner to Accountants for Growth, Succession and Integrated Wealth Management and to deliver personalised advice to clients for a secure financial future.