03 Nov 3 Tips to Consider When Handling Your Estate Planning
Estate planning is the process of preparing all your assets, properties, and belongings so you can make sure they will be given to the right people after you pass away. This involves appointing the right people as your beneficiaries so they can benefit from your estate.
Your beneficiaries don’t have to only include blood relatives either; a beneficiary can include anyone you like.
It’s important though to have conversations surrounding your estate plans with your beneficiaries and your family, so they can be aware of your plans before you pass. By doing so, you can avoid leaving behind any complications or disputes that could possibly arise from your asset distribution.
It’s important to start thinking about estate planning as early as possible, so you can ensure your affairs are in order just in case an unexpected event occurs.
If you haven’t planned where your estate will go, it may not go to who you intended, which can become a stressful situation for those you leave behind.
A financial advisor can help you manage it all right now, but as with all things in life, every process requires planning to avoid making a crucial mistake.
If you want to ensure that everything will go as smoothly as possible in unexpected circumstances, consider the following three tips when handling your estate planning.
1. Consider Your Physical Assets
This may be one of the easiest things that you can arrange early on. This includes your car, your house, and even your furniture. By keeping track of all your assets, you can simplify the process of delegating who in your life you’d want to receive each.
While it is completely up to you to decide on those factors however you like when estate planning, it’s also important to consider being fair concerning the distribution. This may also include having discussions with those closest to you, so they aren’t shocked about what your decisions are when you aren’t around to communicate the reasoning.
2. Taking Note of Your Liabilities
Your liabilities refers to any unpaid debts or responsibilities you may have. If you were to pass away suddenly, it can be important to specify how your debts will be paid. For instance,
Who will pay for your credit card debts or mortgage? How would that person pay for it?
These questions must be answered within your estate plan to avoid causing confusion and unnecessary stress on your loved ones.
It is devastating to lose a loved one, but it is even more devastating to inherit all their debts without knowing how to settle them due to lack of instructions or financial support
3. Pick a Well Trusted Executor
The person responsible for handling your affairs after you’re gone, is nominated as your trustee. They will also be responsible for explaining the content of the estate plan and communicating your wishes.
They will also clarify any details that may seem vague to your loved ones.
Simply put, their job is to deliver your plan to your loved ones as efficiently and effectively as possible, to avoid confusion about who gets what.
It’s important to choose someone who you would most trust to carry out this responsibility, so you don’t have to worry about causing any family conflict or confusion after you’re gone.
A financial planner can help you structure your estate plan
Making a clear list of all your physical assets, taking note of your debts, and picking the right executor for the job will make things easier for those you care about most.
If you are seeking financial advice to help you with your estate plan, Leo Wealth can assist.
We specialise in financial planning in the Central Coast, including estate planning, retirement planning, superannuation advice.