4 Estate Planning Tips

Estate planning allows you to bequeath your wealth according to your wishes. The activity will help prevent family conflict once you die. Below are some tricks to help you as you conduct estate planning.  

1. Your Will Must Be Legal

An experienced wills and estates lawyer will evaluate your will to ensure it is legal. In Australia, you must be 18 years or above to create a will. Besides, it must be signed by the testator and two witnesses. The testator must be of sound mind when writing the will. Moreover, the document should not have any contradicting clauses.

2. Storing Your Will

Your will must be accessible to your immediate family, executor and lawyer when you die. Preferably, store it in a safe or a safe-deposit box. Leave a copy of the will with your wills and estates lawyer. This will can be used if your family cannot locate the original document.

3. Have a Backup Plan 

Things could go wrong once you pass away. For instance, take a situation where a beneficiary contests the will arguing that the document is fake. You can avoid this by reading the will to your beneficiaries or creating a video of you reading the will. There are cases when the executor decides to relinquish his or her duties. You can avoid this by having two or three executors. The secondary executor will settle your debts and divide your estate if the primary executor resigns. 

More often than not, you will need a trust to take care of your kids or beneficiaries who cannot manage their inheritance. Typically, the trustee is expected to work in the best interest of the beneficiaries. However, conflict may arise when the trustee mismanages the trust or fails to pay the beneficiaries. Avert this situation by having an appointor. The appointor does not manage the trust. However, he or she has the power to fire an incompetent trustee. The trust should also have secondary trustees to manage the trust if the primary trustee is no longer available.

4. Update Your Will 

You will must reflect your current financial situation. As such, you must update it if you have a financial windfall or when you acquire or sell assets stated in the will. Ask your lawyer to help you update the document. Typically, the lawyer will attach a codicil indicating the requested changes. The codicil should not contradict the original will. Alternatively, the lawyer could advise you to discard the old will and create a new one. 

When planning your estate, create a legal will, store your will in a safe and accessible place, have a backup plan and regularly update your will.

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