Published: April 2023 | Last updated: May 2026
What happens to your money, your home, and your family when you're no longer here to decide?
Estate planning is how you answer that question, on your own terms. Done well, it minimises taxes on your estate, reduces family conflict, and ensures the right people receive the right assets.
Done poorly, or not at all, the consequences can be costly and long-lasting. With Baby Boomers expected to leave Millennials and Gen Z an estimated $224 billion in inheritances by 2050, having a current, well-structured plan matters more than ever.
Read on to learn what estate planning involves and how Findex can help you organise your affairs.
Put simply, it's the process of planning what happens to your assets, finances, and personal affairs if you die or become incapacitated. That includes drafting a Will, appointing an executor, setting up trusts, and preparing for any tax or legal issues that come with transferring wealth.
A good estate plan reflects your unique financial situation, family circumstances, and personal wishes, giving you control over who manages your finances and makes decisions on your behalf if you can't.
Estate planning in Australia is also subject to various legal requirements, including inheritance, taxation, and superannuation regulations. Working with a qualified financial advisor can help ensure your wishes are properly documented and legally binding.
The benefits of estate planning include the following:
Control over asset distribution: Estate planning allows you to dictate who gets what in the event of your death. It makes it easier for your family to divide your assets and property when the time comes, reducing the likelihood of expensive court cases or legal battles among family members. It’s worth noting though that it doesn't mean the Will can't or won’t be contested.
Tax efficiency: Using trusts and other estate planning strategies, you can minimise estate taxes and other levies owed after your death.
Protection of assets: Estate planning protects your assets from creditors, lawsuits, and other potential threats. The use of legal tools like trusts, can shield your assets from outside forces, ensuring they are passed on to intended beneficiaries.
Caring for loved ones: By setting up trusts or appointing guardians, you can provide for the ongoing care of minor children, elderly or disabled relatives, or other loved ones who may require special attention long after you're gone.
Peace of mind: Knowing that one's affairs are in order and your wishes will be carried out in the event of death or incapacity alleviates stress and anxiety for you and your loved ones.
When it comes to estate planning, there are a few steps you should consider to ensure you're prepared.
Take stock of your assets and liabilities. This includes cash, bank accounts, real estate, investments, superannuation, businesses and debts. It gives you a clearer picture of what your estate consists of to determine how your property will be distributed upon your passing.
A Will is an important legal document in the estate planning process. Making a valid Will is essential for recording wishes about how assets should be distributed after death. It also allows you to appoint an executor to manage the administration of your estate. They are responsible for carrying out the wishes in your Will.
An Enduring Power of Attorney (EPoA) is a legal document a person can make that gives another person or organisation the legal authority to make decisions on their behalf. In the estate planning process, the enduring power of attorney comes in handy when one no longer has the capacity or ability to make these decisions themselves.
An executor is somebody appointed by the testator (the person making the Will) to carry out the deceased's wishes in distributing any assets and winding up the deceased's estate. It's a good idea to appoint someone trustworthy and capable of handling such financial responsibilities, which can be quite complex.
Calculate your estate value. The value of your assets is determined by considering any property you own, investments, business interests, retirement accounts, and other assets. Taking stock of all your assets and liabilities to calculate your net worth is an effective strategy as it helps you plan for taxes and determine how you want your assets to be distributed.
Review your Will regularly. Regularly reviewing your Will ensures that it still reflects your wishes. This allows you to consider changes in your life, such as births, deaths, marriages, or divorces. You can change your Will through a codicil or by creating a new one altogether.
Consider life insurance. Life insurance policies are a source of tax-free income to your beneficiaries after your death. It can also be used to pay estate taxes and debts or provide your loved ones with financial support. Consider whether you need life insurance and how much coverage you need to provide for your loved ones. Then review your life insurance policy regularly to ensure the coverage is adequate for your needs.
Make investments. Investments can help you grow your wealth and provide for your beneficiaries. Some types of investments, like real estate, appreciate over time and provide a source of income. Consider working with a financial adviser to create an investment plan that aligns with your goals and risk tolerance.
Testamentary trusts. Instead of leaving assets directly to a beneficiary, they are transferred into what is called a testamentary trust and held on behalf of the beneficiaries. This is especially utilised if a beneficiary is ill or unable to manage their own affairs.
At Findex, our wealth management specialists work with you to build an estate plan that protects what you've spent a lifetime building.
We can help you:
Understand the tax implications of your super and non-super assets for your beneficiaries
Set up testamentary trusts to protect and distribute assets in a tax-effective manner
Coordinate with your legal professionals to review your Will and Enduring Powers of Attorney.
In addition to personalised advice on estate planning, we also offer personal insurance and retirement planning as well as business advisory and corporate finance services.
An estate plan is more than a legal document, it’s a detailed plan to protect your financial affairs and the legacy you leave behind. A reliable financial advisor will help you understand the benefits of an estate plan and the steps involved in the estate planning process. This enables you to develop effective wealth management strategies to ensure your estate planning is set up properly and is fully compliant.
To speak with a financial advisor tailored to your needs, submit this form today.
Disclaimer and Disclosure information.
Sources:
What is estate planning?, Australian Unity, October 2019
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