The beginning of a new year is an excellent time to review your financial and legal plans, ensuring they align with your current goals and circumstances. Estate planning is a critical part of this process, providing peace of mind that your wishes will be honoured and your loved ones protected.
What is Estate Planning?
Estate Planning is an umbrella term used to describe the process of creating a plan for the management of your financial, legal and personal affairs, and preparing the necessary documents in advance in the event of your death or incapacity.
Estate planning checklist
Below is a checklist to guide you through updating or establishing your estate plan for the year ahead.
1. Review and Update Your Will
- Ensure your will reflects your current wishes, including any recent life changes like marriage, divorce, the birth of a child, or the acquisition of significant assets.
- Name a trusted executor who is willing and able to carry out your instructions.
2. Evaluate Your Beneficiaries
- Decide who will inherit your assets. This could include family, friends, or charities.
- Update beneficiary designations if there have been changes in relationships or family dynamics.
3. Do you have a Trust and/or Company?
- Review existing trust deeds, variations and other important documents to ensure they reflect your current circumstances and succession plan.
- Locate trust deeds and variations.
- Review any company constitutions, variations and shareholder agreements (if applicable).
- Do you have a buy/sell agreement for your business in place?
- Ensure you know where the original documents are located and store a signed copy of the documents in a safe place.
- If you are a director of a company, do you have a Power of Attorney for your company (separate to a personal enduring power of attorney) and if it owns land is it registered with Landgate?
4. Enduring Power of Guardianship (EPG)
- An Enduring Power of Guardianship allows you to appoint a trusted person, known as a guardian, to make personal, lifestyle, and medical decisions on your behalf if you lose the capacity to make those decisions yourself. This can include where you live, who you associate with, and what kind of healthcare you receive. The EPG only comes into effect if you become incapacitated, ensuring that your guardian can act in your best interests when needed.
- The EPG is essential because it ensures that someone you trust will make decisions that align with your preferences and values, even when you’re unable to communicate them.
- Update or prepare an Enduring Power of Guardianship.
5. Enduring Power of Attorney (EPA)
- An Enduring Power of Attorney enables you to appoint someone to manage your financial affairs, even after you become incapacitated.
- Update or prepare an Enduring Power of Attorney.
- If you want to change the people you have appointed on your Enduring Power of Attorney, you will need to formally revoke the document and prepare a new Enduring Power of Attorney.
6. Prepare or update an Advance Health Directive (AHD)
- Outline your preferences for medical treatment in situations where you cannot communicate your wishes. You can outline instructions for treatments you do or do not want, such as resuscitation, life support, or surgery.
- Share this document with your health care proxy and family members.
- Download the guide from the WA Government Health Department website and read through the guide at your own pace.
- Complete the document and book an appointment with one of our Wills and Estate Planning lawyers to discuss any queries you may have.
7. Superannuation – Binding Death Benefit Nomination
- Superannuation is typically not covered by a Will. You will need a binding death benefit nomination through your super fund to direct who receives these funds. We can assist with this.
8. Take Stock of Your Assets
- Compile an updated inventory of your assets.
- Include physical assets like vehicles, electronics, or jewellery.
- Do not forget intangible assets like bank accounts, investments, and intellectual property and cryptocurrency.
- Document the location of important items like safe deposit boxes, deeds, and titles.
9. Plan for Digital Assets
- Make a list of online accounts, including email, social media, and financial platforms.
- Specify how these accounts should be managed or closed in the event of your death.
10. Consider Tax Implications
- Review potential estate tax liabilities and asset protection strategies with your financial advisor and/or accountant.
- Discuss any restructuring of assets or corporate entities with your lawyer, financial advisor and/or accountant.
11. Secure Your Documents
- Store your will, trust documents, and other estate planning paperwork in a secure location, such as a fireproof safe.
- Ensure your executor and trusted family members know how to access these documents.
- We hold our client’s wills in safe custody if the will is made with us at no extra cost.
12. Consult with Professionals
- Work with an experienced Wills and estate planning lawyer to ensure your plan complies with current laws and aligns with your wishes.
- Engage lawyers, financial advisors and tax professionals to address complex financial and tax-related issues.
13. Communicate Your Plan
- Discuss your estate plan with your family to prevent misunderstandings and reduce the potential for disputes.
- Share the names of your executor, trustees, and agents to ensure everyone is informed.
- Show your GP or medical specialist or other health professional that you have made an Enduring Power of Guardianship and/or Advanced Health Directive.
14. Revisit Your Plan Annually
- Make it a habit to review your estate plan at the start of each year or after significant life events such as a separation, marriage, new relationship, birth of a child or grandchild, death of an executor or beneficiary (this is not an exhaustive list).
- Divorce and marriage automatically revoke a person’s Will in Western Australia unless this divorce or marriage has been contemplated in the Will. If you are unsure, book an appointment with one of our Wills and Estate Planning lawyers at Lynn and Brown Lawyers to discuss further.
By tackling these steps early in the year, you can approach the months ahead with confidence, knowing that you have taken proactive measures to safeguard your legacy and protect your loved ones. Estate planning does not have to be daunting—with a clear checklist and the right professional guidance, you can create a Will and other estate planning documents that clearly reflect and document your wishes, providing clarity and peace of mind for both you and your loved ones.
Get in contact with Lynn and Brown Lawyers early on this year to speak with one of our Wills and Estates lawyers about creating a Will and other estate planning documents.
My Checklist
¨ Will (My original Will is located or held _______________________________)
¨ Enduring Power of Attorney (EPA)
¨ I have registered my Enduring Power of Attorney with Landgate (if I own property)
¨ Enduring Power of Guardianship (EPG)
¨ I have told my regular treating doctor/GP that I have made an EPG
¨ Advance Health Directive
¨ I have written down the details of Important contacts such as my accountant, financial advisor, tax agent, stockbroker for my family or given them these details
¨ I have made a Binding Death Benefit Nomination for my superannuation
¨ Make an appointment to meet with a Wills and Estate Planning lawyer to help me review, update or prepare my documents
¨ I am a director of a company; do I have a company power of attorney?
