Plan for Tomorrow.
Estate Planning.
Through a little forethought and planning today, you can make sure all eventualities for the many 'what ifs' of life are covered in the future. Estate Planning is another key component of your financial plan and should be reviewed and - where necessary - upgraded on a regular basis.
Estate Planning involves all the assets you may own or control (singularly or jointly) and includes documentation such as Wills, Enduring Powers of Attorney and Advance Health Directives. It may also involve the use of different Trust structures such as, Testamentary and Discretionary Family Trusts and others.
It can be a complex issue so Metaplanners suggest that you discuss these matters in depth with your adviser before we develop your personal financial plan.
Wills
A Will is a legal document that sets out your wishes (as the Testator) regarding how your assets are to be distributed following your death. It is important that your will is kept up to date as your circumstances change.
Enduring Power of Attorney
Enduring Power of Attorney takes effect should you be declared not to have legal capacity to manage your own affairs. It enables others (such as a spouse or family member) to manage both your financial and legal affairs in the event you are incapacitated - or may be limited to financial matters only. Note that Enduring Power of Attorney can only be created at a time when you have the legal and mental capacity to do so.
Advance Health Directive
Sometimes referred to as 'a living will', an Advance Health Directive enables you to give directions about your future health care - and the types of treatment you wish to receive - during a life threatening situation where you have lost the capacity to make your own decisions. It too can only be created at a time when you have the legal and mental capacity to do so.
Testamentary Trust
A Testamentary Trust is established from your will and can only come into existence upon death. Benefits can be gained from setting up a Testamentary Trust. For example, where minors are named as beneficiaries advantageous taxation rules may apply when income is distributed to them via the Trust.
Discretionary Family Trust
Discretionary Family Trusts can be very complex, but are especially beneficial to the self-employed and also to people with large investment portfolios that generate income, enabling the income to be distributed to low income earners thereby reducing overall tax liability.
Funeral Bonds
Funeral Bonds have the ability to create a fund that is deemed asset and income test exempt resulting in increased Social Security benefits - up to a limit of $5,000 per person.