When we talk about building wealth, most conversations focus on saving, investing and growing your assets. But what happens to that wealth after you’re gone or if you lose the capacity to manage it? That’s where estate planning steps in and is critical in ensuring your family legacy is protected.

Estate planning isn’t just about having a will; it’s about making sure your wishes are respected, your loved ones are looked after and your affairs are handled smoothly. Here are the many things to consider and some examples to help put this into real life scenarios.

The Will: Your Voice After Death

A will is often the first thing people think of when they hear “estate planning”. It’s a legal document that sets out how your assets are to be distributed when you pass away. Without a valid will, your estate will be distributed according to a legal formula set by your state, which may not reflect your wishes. This can delay the process and create unnecessary stress for your loved ones.

Picture Susan, a single mum, who wanted her sister to inherit her house. But without a will, the house was sold and the money split among distant relatives, including a brother she hadn’t spoken to in years.

Enduring Power of Attorney (EPOA): Someone to Step In When You Can’t

This legal document allows someone you trust to make decisions on your behalf if you become incapacitated. There are two main types:
• Financial EPOA – Manages your financial affairs, such as paying bills, managing investments or selling property.
• Medical EPOA – Makes healthcare decisions in line with your wishes.

Life is unpredictable. Accidents, illness, or age-related conditions can strike at any time. Having an EPOA in place ensures someone you trust can step in without delay.

Imagine Mark has a stroke, his sister, appointed under an EPOA, was able to step in immediately to manage his care and finances, avoiding delays and reducing the burden on Mark.

Binding Death Agreement (BDA)/Binding Death Benefit Nomination (BDBN): Superannuation has its own rules

Superannuation often doesn’t form part of your estate and isn’t automatically covered by your will. That’s where a ‘Binding Nomination’ comes in, it directs your super fund to pay your benefits to your chosen beneficiary. Without a binding nomination, the trustee of your super fund decides who receives your super, which might not be what you intended.

For example, James didn’t have a binding nomination. His super was paid to estranged children from a past marriage, not his long-term partner, Amy, who was left with nothing.

Advance Care Directive: Making Your Healthcare Wishes Known

An Advance Care Directive allows you to record your preferences for medical care if you’re unable to make decisions for yourself. It can include the types of treatment you do or don’t want, and who should speak on your behalf. It removes the guesswork for your family and ensures your medical care aligns with your values and beliefs.

Lovely Helen, was diagnosed with early dementia, but had written a directive stating she didn’t want life-prolonging treatment. Her family had clear guidance when she could no longer decide for herself. This made it easier for everyone.

Non-Estate Assets: Family Trusts and Company Structures

Not all your assets are covered in your will. Assets held in family trusts or private companies fall outside your estate. These require separate succession planning.

If you don’t plan for control and distribution of trust assets, disputes can arise or assets might end up in unintended hands.

And for those like David who didn’t appoint a new trustee for his family trust. His family ended up in a costly dispute over control after his death, due to a lack of David’s planning.

Plan now, be proactive

Whether you’re 35 or 75, estate planning is about protecting what you’ve worked hard to build and ensuring it benefits the people and causes you care about.

We consistently ensure we are involved in conversations around estate planning, as they are a pivotal part of managing wealth and the transfer of this wealth to family members. It’s imperative to have a solicitor review your estate plan to ensure that your funds are protected no matter what the future holds.