Estate Planning Advice

As a senior planner in a Sydney firm, I have had the privilege of looking after a large number of family groups, particularly those in the pension and later stages of life. One of our key services was ensuring that all clients had a robust estate plan in place, often involving the active involvement of extended family members. This was especially vital for individuals who were well into retirement.

Over the years, I have gained extensive knowledge and expertise through collaboration with my peers and further studies, including becoming a STEPs accredited adviser. This has allowed me to develop diverse and comprehensive strategies that combine all the tools available to us. These strategies address various considerations, such as tax and succession planning, support for children with disabilities, and the unique dynamics of blended families.

At Phillips Wealth Partners, we understand the importance of proper estate planning. We work closely with trusted estate planning professionals in Canberra to ensure that our clients receive the right advice from the beginning. By collaborating with these experts, we can develop tailored estate plans that align with your unique circumstances and goals.

Why Estate Planning Is Important

If you’re like most people, getting your personal financial plan started can be a challenge. But what about planning your estate?

The Importance of Estate Planning

Many people mistakenly believe that estate planning is only necessary for the wealthy. However, this misconception can lead to unnecessary costs for the estate and additional burdens for your loved ones. The truth is that almost everyone can benefit from developing an estate plan, regardless of age or wealth. An estate plan can help reduce estate taxes and expenses, simplify the transfer of assets to the next generation, and provide protection for beneficiaries.

Defining Your Legacy

An estate plan is a roadmap that outlines how you want your assets to be owned, managed, and preserved during your lifetime, as well as how you want them to be distributed after your passing. It also addresses the critical decision of choosing someone to oversee your estate..

Drafted properly, estate planning can do the following:

• Ensure your wishes are clearly stated and there is no confusion about what is meant to happen
• Have an orderly transfer of assets 
• Administration of your estate is streamlined so it proceeds as quickly as possible 
• Immediate needs of your dependents are considered.
• Money is available to them when they need it

Transfer more tax-efficiently 

Taxes and other expenses are minimized so the estate is as large as possible 

Strategies like joint ownership of property or naming beneficiaries on life insurance and registered plans can be used to pass property directly to beneficiaries without cost

Disburse assets as you intend 

By having a will, you control exactly how your estate is shared 

You can include friends, extended family or charities who would not otherwise share in your estate 

You can ensure that vulnerable people are protected 

You can establish terms and conditions under which your estate will be distributed

Minimise burden on loved ones 

You can appoint the best-qualified person (or professional) to be the executor in charge of the estate, removing the duty of a year’s work from people you do not wish to burden

Plan for business succession 

Bill payments can be arranged to keep the business running 

Strategies like estate freeze can be used to minimize capital gains taxes 

You can arrange for beneficiaries who work in the business and those who work outside of the business to inherit different assets.

The 2014 Family Business Survey by PWC shows 1.4 million family business owners are planning to retire over the next 10 years however only 8 % of family businesses have robust succession plans in place. 38% of family businesses are planning to sell or float their business and 24% plan to pass it on to the next generation. (Source: 2014 Family Business Survey by PWC) 

Make arrangements in the event of incapacity

You can appoint someone you trust to handle your financial affairs in the event you become mentally incapacitated 

By having a Health Directive, you can leave instructions on what kind of medical treatment you wish, or do not wish, to receive if you are not able to speak for yourself.

An estate plan defines how you want your assets to be owned, managed and preserved during your lifetime and how you want them disbursed after your death. The estate plan also deals with the important decision about who will look after your estate.

Questions on estate planning financial planning?  Contact us