There are many elements to an effective Estate Plan or Business Continuity Plan. In order to achieve success with your Estate Planning and Business Continuity Planning there are a few key areas to understand.
Estate Planning is an important part of financial planning.
The estate planning process focuses on wealth preservation and distribution.
The purpose of estate planning is to protect your assets while you are alive and ensure that in the event of your death the right assets go to the right people at the right time and that various issues including superannuation, capital gains tax, business structures and insurance are taken into account.
Estate planning is much more than simply making out a Will. There are crucial decisions to make in many areas and ultimately the Will provides a set of instructions for your executor and trustee to follow and a vehicle for the efficient distribution of assets.
Whilst estate planning focuses on the position after death, the most significant effort needs to be expended whilst you are alive!
Our estate planning approach involves a seven step process:
1. Identify what you want to happen in the event of your death. We call this the estate vision.
2. Identify what would actually happen now - this is your situation analysis or current reality.
3. Identify the threats that may impede efficient distribution of assets, ie taxation, potential for conflict and challenges to the Will.
4. Establish the adequacy of assets to achieve the estate vision.
5. Identify critical issues and establish tasks and objectives which deal with the threats and impediments to your wishes. Formulate the plan.
6. Take action and implement the plan
7. Review - catering for change such as the suitability of your executor, guardians or business circumstances.
Download the Estate Planning Checklist