Shaping your legacy

After a period of rest, reflection, and time with loved ones over the Christmas break, the start of a new year is about planning – not just for the year ahead, but for the legacy you want to leave behind. 

Effective estate planning ensures your estate is distributed according to your wishes and that things aren’t left up to chance. However, depending on family dynamics, it can be a fraught process. Below are some key considerations and strategies to help you avoid common pitfalls.

A valid and up-to-date will is the cornerstone of any estate plan. Major life changes, such as marriage, divorce, or the birth of a child, can significantly shape your future and impact your plans for your estate – so regular reviews are necessary to ensure that your will accurately reflects your current circumstances. If you remarry, for instance, your existing will may not be valid. Keeping your estate plan up to date will help prevent unintended consequences and ensure your wishes are honoured.

Consider the specific needs and circumstances of your intended beneficiaries. Using trusts within your will can protect assets for vulnerable people, such as those who may face financial difficulties or have special needs. For example, if a beneficiary is at risk of bankruptcy, a trust can safeguard their inheritance from creditors. Thoughtful planning can ensure that your wealth benefits your loved ones in the most appropriate way.

The process of estate planning can bring family dynamics – and long-buried tensions – to the surface. Open communication is key. Discussing your intentions with your family can prevent misunderstandings and dampen down conflict; it also ensures they are aware of your wishes and can help carry them out. A great example is if you have established a charitable foundation. Getting your children involved in managing this can help secure their ‘buy-in’ to your philanthropic goals – and ensure those goals continue to be met after your passing.

A comprehensive estate plan addresses all aspects of your wealth, providing clarity and security to those left behind. But a valid will is only one part of planning your estate – it’s also important to make arrangements for non-estate assets such as life insurance and superannuation. Take the time to make plans for these assets, so that the distribution of funds happens the way you want it to. 

Tax implication on estate planning can be complex so, independent tax advice and/or legal advice should be sought.

Estate planning can be complex, so it's important to seek advice from experienced professionals. ANZ Private can connect you with experts who can help you navigate this process and ensure your wealth is protected and passed on according to your wishes.