One of the most important decisions you can ever make about your wealth is also one of the least discussed. Even the hardest headed business people are sometimes reluctant to talk about estate planning since it inevitably brings the subject of death very close to home. Some think of it as something they only need to worry about at the very end of their life and would – understandably – greatly prefer to postpone the matter until then. This may explain why 52% Of Australians Don’t Even Have A Will.
However, more long-sighted thinkers recognise that estate planning should begin as soon as you have significant assets, as it can help you manage and protect your wealth as your living situation changes and progresses. They understand that Early And Proactive Estate Planning is essential because it can protect your assets and make sure your family, loved ones and business interests are looked after should you pass away or be incapacitated. Estate planning will ensure your tax obligations are met while keeping them as low as legally and ethically possible so that your wealth and assets can be passed on without unnecessary losses. Here are four ways estate planning can protect your wealth.
1. Estate planning maximises your existing assets
Although a formal “death tax” Was Abolished In Australia In 1979, many believe that there is a chance of it being reintroduced in the future as public finances are placed under ever greater strain. Even if no such death duties return, there are still tax obligations on earnings, investments and assets that will apply in the case of your death, but these can be kept lower if they are managed properly by an expert in estate planning. You don’t want the value of your estate as you know it to change, you want to ensure that what you want to hand over to your beneficiaries is exactly what they get. Good estate planning can provide you with that elusive peace of mind. As the Debate Over How To Pay For Aged Care Costs continues to simmer in the public sphere, you need Expert Advisers who understand the evolving legal situation and will ensure that in your case the bills for any future care costs can be covered while protecting as much of your wealth as possible.
2. Estate planning protects your family from unexpected bills
Although a formal “death tax” was abolished in Australia in 1979, many believe that there is a chance of it being reintroduced in the future as public finances are placed under ever greater strain. Even if no such death duties return, there are still tax obligations on earnings, investments and assets that will apply in the case of your death, but these can be kept lower if they are managed properly by an expert in estate planning. You don’t want the value of your estate as you know it to change, you want to ensure that what you want to hand over to your beneficiaries is exactly what they get. Good estate planning can provide you with that elusive peace of mind. As the debate over how to pay for aged care costs continues to simmer in the public sphere, you need expert advisers who understand the evolving legal situation and will ensure that in your case the bills for any future care costs can be covered while protecting as much of your wealth as possible.
3. Estate planning reduces exposure to financial risks
Wisely taking the necessary steps towards an orderly transfer of your estate mitigates the risk that your wishes will not be listened to in the event of your death or that your legacy may look very different from the one you have had in mind through all your years of hard work. Without legally watertight paperwork, there is always the risk that your wealth could be vulnerable to outside lawsuits or that it could end up being eaten up in a dispute among potential beneficiaries. The tragic case of Millie Phillips, once known as Australia’s richest woman, shows just how damaging the consequences of not having a robust will in place can be. Good estate planning can leave your wealth much less vulnerable to such harmful disputes and risks.
4. Estate planning protects your assets during times of great change
COVID-19 has reminded us all of just how vulnerable we all are to change. As well as the enormous social disruptions it has caused, it has also had a huge financial impact from the country’s GDP right through to individuals’ shares and investments. There has reportedly been renewed interest in writing wills and other forms of estate planning during the pandemic, but this isn’t just about increased fear of mortality. There is also the awareness that if you should die during a time of economic turmoil, that could impact the amount of money that is passed on. Good estate planning will ensure your assets and wealth are managed flexibly during times of great change. Having good estate planning in place also means that you can get on with the more enjoyable task of growing your wealth while living your life fully, knowing that your money will be well protected not just today or even tomorrow but long into the future, bringing joy and comfort into the lives of those you care about for generations to come.
Who is Lazarus Legal?
A trusted Will & Estate Planning lawyer is one of the most important components of the process. At Lazarus Legal, we work with a large range of clients who wish to create, update and plan estate plans that fits their lives, priorities and future aspirations, regardless of the size and complexity.
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Barry Lazarus
We’d be lying if we told you that this bloke isn’t the big honcho of our team, but his name is a dead give-away. The founder of Lazarus Legal, Barry Lazarus is an old school, tough as nails lawyer. They don’t forge litigators like this anymore. With decades of experience in both Australia and South Africa, his wisdom is as renowned as his name.
