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Family Succession Planning - keep it simple

Posted by Pacesetter Financial Services

Even though family succession planning may seem complex, it’s important to take action. A range of matters require your attention if you want to achieve your financial outcomes and leave a legacy for the next generation. Please take a moment to read this summary of important financial and family matters to consider, then give us a call to take the first steps for implementing your family succession plan.

Firstly, you should be clear on these four points:

  • how to plan for debts to be covered in the event of your death or incapacity while still leaving funds for your dependants

  • how and why to nominate a beneficiary within your super fund or life insurance – this can be just as important as having a valid Will

  • how the benefits your beneficiaries receive can vary according to how they are taxed, and the implications for your beneficiaries of receiving an income stream or lump sum

  • how assets may be reallocated if a beneficiary died before you

Secondly, we recommend you check the following ‘Succession Planning To-Do List’ and consider 15 important matters that will affect your family’s future if you’re no longer available to take care of them:

Succession Planning To-Do List

  1. Leave a Will
  2. Provide for your dependants
  3. Have clear intentions
  4. Specify which debts are to be paid
  5. Think about tax implications
  6. Make sure you don’t leave an ‘informal Will’
  7. Nominate Guardians
  8. Only bequeath assets that you own
  9. Nominate beneficiaries with your super fund, don’t assume your super will automatically be dealt with via your estate
  10. Do not use beneficiaries as witnesses
  11. Grant adequate power to executors
  12. Communicate your intentions with your executors and beneficiaries
  13. Keep your Will up-to-date
  14. Ensure your executor knows the location of your Will
  15. Leave written instructions on non-financial aspects such as preferred burial arrangements

To find out more about how we can assist you to both fund your retirement lifestyle as well as make plans for your wealth to be distributed to your family upon your passing, please contact Pacesetter Financial Services on 07 3808 2808.

Pacesetter Financial Services and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 AFSL 357 306 trading as Fortnum Financial Advisers.

This information does not consider your personal circumstances (including taxation) and is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances.