Giving Our Wealth a Lasting Purpose
- By Darren Smith
The changing financial landscape has impacted the stress levels of many households. The impact of the rising costs of living and the volatility that comes with global unrest dominates headlines and conversations. No one has a crystal ball, but it does reinforce that we need to focus on what we can control.
One of those areas is our wealth and ensuring that it has a lasting purpose and legacy.
For many Australians, contemplating what happens if we are no longer here can be overwhelming. Often we deliberately put our heads in the sand when it comes to preparation.
We all work so hard to build up our wealth and have a productive and purposeful life. So it is hard to fathom why more than 60 per cent of people do not have a Will or have not updated it to reflect their current circumstances. By not having a Will in place, changes in our financial position, our relationships or our dependants can be ignored or not considered.
This is distressing knowing that in many cases the outcome will not reflect our wishes which could lead to significant hardship and stress for our loved ones and survivors.
Often, people wish to leave a meaningful legacy that makes a difference for others. For many, this is passing on something to our children and extended families to give them solid financial support.
In our discussions with clients, we always recommend documents or Wills are reviewed by a professional.
Basic steps to ensure that people have a healthy estate plan
1. Understanding your current position.
a. Document your wishes.
b. Keep all relevant documents in a safe place, including key contacts or professionals you have worked with.
2. Understand the alignment of your wishes with your partner.
3. Establish who and what you want the estate to provide for.
4. Understand how superannuation assets will be impacted.
5. Understand how your estate plan considers your business interests and delivers personal protection.
6. Involve a professional adviser to revise your plan.
When looking at what you want the estate to provide, many often choose to support charitable causes or make a specific bequest. This gives us the peace of mind that our gift will make a difference beyond our demise.
You can make provisions in your Will for loved ones and then transfer the residual to charitable causes, or you can leave specific instructions in your Will for amounts or items to go to charities or causes and then give the residual to beneficiaries.
If you are researching estate plans, ensure you visit the websites for the state you live in, as the rules can vary from state to state. Some useful websites to get you started include:
· Law society website for your state.
· Public trustee website for your state.