Providing for Future Generations
Leaving a legacy for your loved ones is an important goal. Estate planning helps you take stock of your assets, decide how they’re structured, and plan how they’ll be distributed after you pass away. It also ensures your needs are covered during your lifetime.
What Happens to My Super and Insurance When I Die?
Superannuation and insurance death benefits are usually paid to your nominated beneficiaries. Your super balance is transferred to a cash option upon notification of your death and distributed based on your beneficiary nominations.
Who Can Be My Beneficiary?
For superannuation, you can nominate binding or non-binding beneficiaries, which have different legal implications. For insurance outside super, you can nominate anyone as your beneficiary. It’s important to understand these options to ensure your assets go to the right people.
Protecting What You Have
The best way to secure your family’s future is to have adequate cover and a well-thought-out estate plan. A plan should cover some of the following to ensure your assets go to the right people.
Establishing a Will: A will outlines how you want your assets distributed and can include naming a guardian for your children
Selecting a Executor: An executor carries out the instructions in your will, including applying for probate and distributing your assets
Granting Power of Attorney If you are no longer able to manage your affairs, you can be assured someone you trust will be handling any decisions relating to your assets and medical circumstances
Giving Guardianship: A guardian makes decisions about your living arrangements and medical care if you can no longer make them yourself
Consider a Family Trust: A family trust (discretionary trust) can protect family assets and help manage income tax-efficiently, especially for small businesses