The process of estate planning involves preparing for the disposal of your estate in the event of your death. Many Australians could benefit from estate planning, but fail to take this step due to not fully understanding the process.
Here are a few of the more common misconceptions surrounding estate planning that you should be aware of.
Estate planning is the same as writing a will
Some people inaccurately believe that writing a will is the same as estate planning, due to the fact that these terms are sometimes incorrectly used synonymously.
Estate planning is similar to writing a will, but is a much more encompassing process that also involves life insurance, superannuation nominations, powers of attorney and power of guardianship.
My estate is too small to consider estate planning
Even people with limited assets can often benefit from estate planning. This is because estate planning can ensure that you have nominated a beneficiary to receive your superannuation entitlements when you die.
Furthermore, you might own sentimental items that could be the subject of debate in the event of your death.
With estate planning, you ensure that these items are fairly distributed to the friends and family members you care about.
I am too young to consider estate planning
Young people generally believe they will not need to consider estate planning until they are older and closer to death. In fact, untimely deaths can be the source of much conflict within families if the individual who has passed away has not planned for this eventuality.
You can avoid this possibility by implementing estate planning at an early stage, and in the process give you and your family peace of mind for years to come.
It is also important to consider the wellbeing of your children when considering estate planning. If you and your partner were to die unexpectedly, it is important that you have appointed a guardian who will be able to take care of any dependants you might have. Estate planning can help with this.
Estate planning is too complicated
Many Australians delay estate planning as they believe that it will be too complicated a process. In fact, estate planning can be simplified significantly by seeking expert assistance.
By talking to an experienced wills and estates lawyer, you can access the knowledge and experience you need to create a comprehensive and reliable plan for your estate.