It’s never too early to start estate planning

Many people believe that estate planning is a task you start when you are getting close to retirement… but the truth is, you really should begin planning much earlier than that! In fact, it’s never too early to plan your estate, because you never know what could happen tomorrow.

While you might not like to talk about the inevitable… it’s important to be pragmatic about the realities of life. As soon as you join the workforce, you start to build assets that form part of your estate.

Even if your super balance is only low, it’s likely that you will have insurances held within your fund that would need to be distributed should something unforeseen happen. Regardless of your age, it is worthwhile having a formal plan in place to make sure assets are distributed according to your wishes.

Choosing the people you wish to manage your affairs is an important step and should be done in consultation with trusted members of your family or closest friends.

Careful consideration is needed when you are appointing each role, as it is a very personal decision.

Depending on your preference, you can appoint a single person to oversee all these roles, or you can select a different person for each.

You can also decide whether you want them to work jointly or have autonomy in the decision making process.

You may not realise that your superannuation is not classified as an asset of your estate.

It is not included within your will as it is recognised as a superannuation death benefit. It is distributed as per your binding nomination, which you should have set within your super fund details.

But if you have not made a nomination or it has lapsed, the benefit is likely to be distributed at the discretion of your fund’s trustees.

You can nominate your estate as the beneficiary, then your executor would distribute the funds according to your will. Super regulations are complex, so again we recommend discussing this with an advisor to make sure you make a valid nomination.