ESTATE PLANNING CHECKLIST
Checklist for estate planning
Estate planning in New South Wales involves organising your affairs to ensure your assets are distributed according to your wishes and your loved ones are taken care of after your passing. Here’s a comprehensive checklist for estate planning:
- Assess Your Assets and Liabilities
- Compile a list of your assets, including real estate, investments, bank accounts, retirement accounts, insurance policies, and personal property.
- Identify any liabilities or debts, such as mortgages, loans, or credit card debt.
- Define Your Objectives
- Clarify your goals and wishes for the distribution of your assets, including providing for your family, minimising taxes, and supporting charitable causes.
- Create or Update Your Will
- Draft a will that outlines how you want your assets to be distributed after your death.
- Name an executor to manage your estate and carry out the instructions in your will.
- Review and update your will regularly, especially after major life events such as marriage, divorce, birth of children, or acquisition of new assets.
- Consider Testamentary Trusts
- Explore the option of setting up testamentary trusts in your will to provide for the ongoing management and protection of assets, especially for minor children or beneficiaries with special needs.
- Appoint Enduring Power of Attorney
- Designate someone you trust to act as your enduring power of attorney to make financial and legal decisions on your behalf if you become incapacitated.
- Ensure your enduring power of attorney document complies with NSW legislation and covers your specific preferences and circumstances.
- Appoint Enduring Guardians
- Nominate an enduring guardian to make healthcare and lifestyle decisions for you if you are unable to do so yourself due to illness or incapacity.
- Clearly communicate your preferences for medical treatment and end-of-life care to your enduring guardian.
- Review Beneficiary Designations
- Review and update beneficiary designations on your retirement accounts, life insurance policies, and superannuation funds to ensure they align with your estate planning goals.
- Consider the implications of binding and non-binding nominations for superannuation benefits.
- Organise Important Documents
- Compile essential documents, including your will, power of attorney, enduring guardian appointment, insurance policies, deeds, titles, and financial records, and store them in a secure location.
- Provide copies of these documents to trusted family members or advisors and inform them of their location.
- Minimise Taxes and fees
- Explore strategies to minimise taxes on your estate, including gifting, charitable giving, and utilising tax-effective structures such as testamentary trusts.
- Consider the implications of capital gains tax (CGT), stamp duty, and other taxes on the transfer of assets.
- Communicate Your Wishes
- Discuss your estate planning intentions with your family members and beneficiaries to avoid confusion and minimise the risk of disputes after your passing.
- Provide clear instructions and guidance to your executor, enduring power of attorney, and enduring guardian regarding their roles and responsibilities.
- Regular Review and Updates
- Regularly review and update your estate plan to reflect changes in your personal circumstances, financial situation, and relevant laws and regulations in NSW.
- Seek professional advice from estate planning lawyers, financial advisors, and tax specialists to ensure your estate plan remains effective and up-to-date.
By following this checklist and seeking guidance from CML Lawyers and your accountant, you can create a comprehensive plan to protect your assets and provide for your loved ones according to your wishes.