Financial Planning

Why You Need More Than Just a Basic Will

March 31, 2021

The top 3 things to know about estate planning to best protect your finances and your family.

If you’ve got people in your life you care about and want to take care of in the future, it is wise to consider building an estate plan.

None of us like to think about what will happen when we pass away, but planning ahead can help make sure you, your family, and your assets are protected.

One of the benefits of an estate plan is that you can formalise your wishes. This can help minimise any disputes or misunderstandings about your will and estate plan.

 

What is Estate Planning?

Many people often think that estate planning is just a will, but it is so much more than that.

Your estate is made up of what you own. This includes your home, car, investments, and savings.

So, your estate plan outlines what will happen to all these things when you pass away. Any assets you want to pass on to people, charities, or other organisations can all make up part of your estate plan.

“A good estate plan will help make sure your wishes are carried out when you die. It can also help if you become unable to make your own decisions.”1

 

3 things you must know before building your estate plan:

1. Don’t Wait to Write Your Will

According to ASIC, over half of Australians die without a will. This may mean that your money or assets don’t end up where you want them to.

“If you die without a will or with an invalid will, this is known as dying intestate. When this happens, each state and territory has its own laws regarding how your assets will be distributed. Though those assets will usually be distributed to your family members, this allocation may go against your final wishes.”

Finder.com.au

 

It’s equally as important to keep your will up to date and adjust any asset allocations necessary, especially when you go through a big change, such as if you:

  • Get married
  • Divorce or separate
  • Have children or grandchildren
  • Have a significant financial change
  • Lose your spouse (or someone else who is named in your will) through death

2. Don’t Forget About Your Hard-earned Super

When you pass away, your superannuation balance is not automatically paid to your estate. A Binding Death Benefit nomination will ensure that your hard-earned super balance is paid out to exactly who you want.

 

According to ASIC’s MoneySmart, “If you don’t nominate someone, the super fund trustee will decide who your money goes to.”

 

Make sure you are also across how long different nominations are valid for.

An experienced financial advisor at Cambio Group can help you create and review your estate plan to make sure your long-term objectives are being met.

 

3. Are You Creating the Most Tax-effective Plan for Your Family/Beneficiaries?

When writing your will, or creating your estate plan, many people often forget to think about the tax implications when making decisions.

While your goal may be to support your partner, children, or other loved ones, your choices may actually be doing the complete opposite.

It’s important to consider your beneficiaries’ financial situations. Distributing your assets (including your ongoing income) can bring different tax implications and obligations.

Estate planning, particularly with the guidance of a full complement financial services suite like Cambio Group, can help to reduce any unnecessary tax costs.

 

How Cambio Group Can Support You to Build an Estate Plan.

At Cambio Group, our financial planners are experienced and knowledgeable at guiding clients through the estate planning process.

We take a holistic approach to financial advice taking into account your financial circumstances, your family, and most importantly – your goals.

We can help you create a tax-effective estate plan well-suited to your assets and to create positive outcomes for your beneficiaries. Our financial advisors on the Gold Coast specialise in wealth management services and can assist in a financial plan to protect your wealth now and in the future.

It’s never too early to plan for your financial future and your family’s financial future.

Contact Cambio Group’s Financial Advice team today for an initial complimentary meeting. Your first meeting is free, so you have nothing to lose, and absolutely everything to gain.

 

References:

1 https://moneysmart.gov.au/wills-and-powers-of-attorney
2 https://www.canstar.com.au/life-insurance/writing-a-will/

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

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