"The only things certain in life are death and taxes"

Estate planning is a crucial element of the financial planning process, focusing on protecting your assets and ensuring your best interests are looked after in life as well as death.

Most of us can do a decent ‘mental inventory’ of the assets we own.  No doubt your list would include assets such as your home, car, household contents, jewellery, money in the bank and investments. A Will may be sufficient for ensuring that your wishes are clear about how you want these assets  distributed upon your death, but there are also assets (considered to be ‘non-estate assets’) that you may not have thought about. Non-estate assets might make up a considerable part of your wealth; this may include super, family trusts, jointly owned assets such as the family home and insurance proceeds (although these pose additional considerations).

Estate planning involves not only distributing your assets after your death, but also developing strategies for non-estate assets. It may also involve:

• considering making arrangements for young children or vulnerable beneficiaries
• factoring in blended families and previous relationships
• choosing someone to  action your directions 
• protecting business arrangements, and
• final arrangements such as funeral expenses.

Estate planning can also help you make provisions for life’s unexpected challenges, for instance, the event you become unable to make your own decisions for some reason in the future (e.g. illness or an accident). You may think about your options such as Powers of Attorney, medical directives and/or guardianship measures (for children).

Is your Will enough?

You may have a Will, but is it up to date? What changes have occurred in your life since you last reviewed it? Consider relationship changes, capital purchases, children and grandchildren. While notall major life changes make your Will invalid, some do, so it’s best to seek professional advice if you have any concerns. Another area that people often forget is a change in your assets. Do you still hold the same assets when your Will was written?

What if you hold a life insurance policy?

Most of us think that holding some form of life insurance is a straightforward way of providing for loved ones in the event of unexpected death, as well as accidents and illnesses during your lifetime. But there’s more to consider. You should routinely review and if necessary revise who you have listed as the beneficiary on your life insurance policy. Make sure your listed beneficiary or beneficiaries actually reflects your current wishes.

UniSuper Advisers can help you assess your current needs and help you consider all your options.

What will happen to your superannuation?

It's also wise to plan for appropriate distribution of your non-estate assets (like super) as part of your broader estate plan. Strategies can include the use of:

•    binding nominations;
•    preferred nominations;
•    reversionary pensions; and
•    the use of trusts.

Who will ensure your Will is actioned in the way you want?

It’s important to ensure your Will is up-to-date, but it’s equally important to ensure those named as your executor (Legal Personal Representatives, i.e. the people who carry out your instructions) are actually able to carry out your wishes. Questions you should ask yourself include:

•    Does this person have the time?
•    Will they act impartially in family disputes?
•    Will they be able to handle the legal responsibilities? and
•    Are they willing to be your executor?

As you can see, effective estate planning needs to deal with much more than just Wills. Insurance, super, guardianship of children, business assets or family trusts may not be considered or covered by “simple Wills”. These matters are all complex and require specialist advice.