​What is estate planning?

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16 Oct 2018 | 1 min. read

An estate plan gives instructions on how you want your money and savings distributed after your death. Find out more about estate planning, and why it's important if you have dependants.

Key takeaways

  • Planning your estate before anything happens makes it easier when something does.
  • Delay in planning means a delay in the transfer of the estate to loved ones.
  • Without a Will, your estate may not be distributed according to your wishes.

What is estate planning?

Estate planning is about how you want your estate—the money and savings you worked hard for—distributed after your death. It is about making sure that the people and causes you care about receive what you want to give them.

If you have young or disabled children, or elderly parents who rely on you financially, estate planning is vitally important. A thorough plan could help ensure that your family's needs are provided for.

Estate planning helps you work out:

  • What you're worth
  • Who gets what after your death
  • Who you want as your children's guardian
  • How you want your assets managed
  • Who to trust to carry out your estate plan

Why do people avoid it?

Many people are too busy living to think about end-of-life planning. Some common reasons are:

  • "It's too morbid. I don't want to think about it."
  • "I'm still young. I have plenty of time to give final instructions."
  • "It's too much work and takes up too much of my time."
  • "Not me. Not interested."
  • "I've nothing much to plan or give away."

It is about making sure that the people and causes you care about receive what you want to give them.

 

It's not a happy topic to think about, but what if we don't have a plan?

Here are three things that could happen:

  • Delay - A delay in distribution means that your family can't get the money when they need it most.
  • Disputes - Tensions may arise if it's not clear who receives what.
  • Intestacy - Without a Will, the estate may not be distributed as you wish.

Last updated on 07 Nov 2018