If you don’t plan you could learn a hard lesson with assets being lost, family feuds or even money being handed to the government due to you not having made a Will or instructions on where it should be distributed.
For the Australian population, estate planning has become even more important as collectively our wealth has exploded over the last 25 years and looks set to continue.
14.5% of Australian are now 65 years old or over (approx. 3.8 million people). 55% of the country’s wealth is distributed to the Baby Boomer generation who only make up of 25% of the population. Australia is seeing a wealth distribution intergeneration change.
Estate planning is critical to identify what will happen to your assets and liabilities if something happens to you. Estate planning will give everyone involved piece of mind and make sure your wishes are followed protecting your business partners and beneficiaries.
All of this planning will come in handy when tax outcomes are reviewed and if legal matters are required at a later date.
Being a business owner, you will need to consider a number of different issues that could be caused if you were no longer able to carry out your current role. These issues could include:
- Who would perform your role?
- Will your beneficiaries take a share of the business?
- Will the business need to be sold?
These questions and many more can be considered as part of your estate planning requirements. This kind of planning is very important to help protect your beneficiaries and any business partners attached to the business, plus relieve any anxiety that could be associated with business structure going forward.
Estate planning does not have to be hard work, but it does have to be planned.
Other things to consider when planning your estate other than money could be
- The care and maintenance of minor children.
- Managing the respective rights and expectations of beneficiaries, particularly with blended families.
- Avoiding disputes between family members.
- Relationships outside of the immediate family.
- Managing liabilities of the estate.
- Assets which may not be capable of immediate realisation or where value will be diluted by realisation.
- The transfer of assets through generations.
Need Help with Your Estate Planning?
For specific advice on your estate planning needs call the team at HBG Tax & Accounting on 9594 1963 and discuss your situation and requirements.
This article was written based on information supplied from Knowledge Shop Newsletter February 2019.