Planning for the future can be a daunting task, especially when it involves making decisions that will impact your loved ones after you’re gone. Estate planning is a crucial aspect of this process, ensuring that your assets are distributed according to your wishes and that your family is taken care of. This guide provides a clear and comprehensive checklist for those dealing with estate planning, helping to alleviate some of the stress and confusion of creating such an important part of your future plans.
What Does Estate Planning Mean?
Estate planning involves the preparation and arrangement of tasks that manage an individual’s financial and legal affairs in the event of their incapacitation or death. The process includes the bequest of assets to beneficiaries, the settlement of debts and other plans for how your loved one’s deal with this challenging time.
When is Estate Planning Required?
Estate planning is necessary at various life stages, particularly when significant life events occur. These include:
- Marriage or remarriage
- Birth of a child or grandchild
- Divorce or separation
- Purchase of significant assets like property
- Retirement planning
- Receiving an inheritance
- No longer financially supporting a child
Estate planning ensures that your affairs are in order and your loved ones are protected regardless of what life throws at you.
What is the Estate Planning Process?
Before death occurs:
- Create a Will Ensure you have a legally valid will that clearly states your wishes
- Assign an Executor Choose a reliable person to execute your will
- Power of Attorney or Guarding Assign a power of attorney or guardian to handle your affairs if you become incapacitated
After death occurs:
- Obtain a Death Certificate The executor must obtain a death certificate and provide to relevant entities
- Read the Will The will should be read to understand the deceased’s wishes
- Identify and Inventory Assets List all assets, including property, debts, accounts and personal items
- Apply for Probate Submit a probate application to the court to validate the will
- Notify Creditors and Settle Debts Inform creditors and settle any outstanding debts
- Distribute Assets Distribute the remaining assets as per the will to the beneficiaries
How Long Does Estate Planning Take?
The duration of the estate planning process can vary significantly based on several factors, including the complexity of the estate, the size of the estate, the presence of a valid will, and the efficiency of the executor can influence this timeline. It’s important that you engage with your family and other loved ones to help you decide your estate plane and to make sure they are aware of your wishes before your death. This can take up to a year to decide, organise and finalise.
Delivering on an estate plan after someone’s death can also take varying time. Factors include whether any disputes arise, how long it takes to receive a death certificate and grant of probate, how well documented debts, bills and subscriptions are and how detailed instructions are for non-financial things like digital and social media assets and account. Generally, this can take anywhere from six months to over a year.
Do You Need an Estate Lawyer?
While it is possible to handle estate planning on your own, hiring an estate lawyer can be beneficial, especially for complex estates or when disputes among beneficiaries are likely. An estate lawyer can ensure all legal requirements are met and help resolve any issues that may arise during the process. They can also provide valuable advice on tax implications and strategies to protect your assets.
For personalised assistance, please send an email to enquiries@billwill.com.au and we can put you in touch with one of our estate planning partners.
Common Estate Planning Issues
Estate planning can present several challenges. Here are some tips to avoid common issues:
- Disputes Among Benefactors Clearly outline your wishes and communicate them to your family to prevent misunderstandings
- Delay in Obtaining Probate Ensure all documents are correctly filled out and submitted promptly
- Unknown Debts or Accounts Conduct a thorough search to identify all billing and subscription accounts alongside any outstanding debts
By following these steps and being proactive, you can help ensure a smoother estate planning process for your loved ones.
Conclusion
Estate planning is a vital task that ensures your assets are handled according to your wishes and provides peace of mind for your loved ones. By understanding the process and following a comprehensive checklist, you can alleviate the stress and confusion during this challenging time. Remember, planning today can make a significant difference for your loved ones tomorrow.
