Family succession planning can be complex, particularly for rural families. None the less it’s important to take action and there are a range of matters that you will need to work through to not just achieve financial outcomes but also the legacy you wish to leave for the next generation. Here I’ve summarise for you the important financial and family matters you should be considering now that will affect your family upon your passing.
First things first, I’ll cut through the jargon and help you to articulate these key considerations:
- how to plan for debts to be covered in the event of your death or incapacity while leaving funds for your dependants
- understanding how nominating a beneficiary within your super fund or life insurance works – this can be just as important as having a valid Will
- how the benefits that your beneficiaries receive can vary according to how they are taxed and the implications for those beneficiaries if they receive an income stream or a lump sum
- how assets may be reallocated if a beneficiary were to die before you
Then, I recommend you check the following ‘Succession Planning To-Do List’ and consider these 15 important matters that will affect the future of your family, if you’re no longer available to take care of them:
- Leave a Will
- Provide for your dependants
- Have clear intentions
- Specify which debts are to be paid
- Think about tax implications
- Make sure you don’t leave an “Informal Will”
- Nominate Guardians
- Only bequeath assets that you own
- Nominate beneficiaries with your Super fund, don’t assume your Super will bypass your estate
- Do not use beneficiaries as witnesses
- Avoid appointing a beneficiary as executor of your Will
- Grant adequate power to executors
- Communicate your intentions with your executors and beneficiaries
- Make provisions for a residue
- Keep your Will up-to-date
To find out more and to discuss how I can assist you to work through your family succession matters in a logical manner and coordinate with others including your accountant and solicitor, towards creating outcomes that are specific family circumstances, please give me a call on 0438 946 638.
Phillip Dibben is a financial adviser at Active Financial Management. Active Financial Management and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306 trading as Fortnum Financial Advisers.
This information does not consider your personal circumstances (including taxation) and is of a general nature only. You should not act on the information provided without first obtaining advice specific to your circumstances.