A thoroughly drafted Will should form the foundation of your estate plans, assuring you will allocate your assets according to your wishes. Nevertheless, it pays to be heedful that not all assets can be granted through a Will.
For instance, property co-owned with joint tenants (a spouse) automatically transfers to the co-owner when you die. If you don’t want this to happen, you have an option to switch your property under ‘tenants in common ownership structure.’ It will let the interest in the property automatically passes into your estate when you pass away.
Think Beyond The Will When You Are Making A Estate Plan
1. Status Of Your Cover Policy
If you have designated a beneficiary on your life cover policy, the insurer must compensate them directly. And this fund will not form part of your estate. Hence, it is worth speaking to your financial adviser in Adelaide before changing your life cover.
2. Get Your Super Sorted
The administrator or trustee of your super fund has the discretion to issue your super as they see fit. The only way around this is to successfully create a ‘binding death benefit nomination’ asserting a particular beneficiary. Stringent rules apply, and it is a step where the expert advice of a financial adviser is a requirement.
3. Power of Attorney
Power of attorney gives a company or person the authority to act on your behalf in specific circumstances. For instance, if you plan an extended vacation and need someone to look after your financial matters while away, power of attorney enables someone you trust to handle your money until your arrival.
Moreover, power of attorney can be a financial aid if you are pronounced unfit in any way and are unable to approve the sales of assets pr bank withdrawals.
4. Impact Of Tax
Another important consideration is the impact of the tax on estate plans. It would be best to be mindful of the capital gains tax that may trigger due to the disposal of assets in line with your Will. Therefore, a non-dependent beneficiary who inherits your super savings can experience a large tax bill. Talk to your financial adviser in Adelaide for a review of the possible tax implications of your Will.
5. Testamentary Trust
When you set out the testamentary trust in your Will, it only comes into effect once you pass away. These trusts are advantageous when you are not sure a beneficiary will use their inheritance wisely or have the beneficiaries who are children or who have lessened mental capacity.
