Smart Money Strategy

CHAPTER 14The Estate Planning Strategies

Estate planning. What a cheerless topic to have to read about! It's not something we like to talk about, let alone have to do — yet it's an essential part of managing our finances and planning for the future. You might not realise it, but it also links to your ‘why’. Estate planning provides you with the opportunity to plan and record what you want done with your assets, less any liabilities or debts, after you've passed.

I've never seen anything good come from a situation where there's been no estate planning. Nobody wins. Even those who end up receiving something from the person who has passed have had to go through some sort of emotional torment and gut-wrenching hell to get it. It doesn't bring families together. It rips them apart in some situations and may even make people resentful of each other and the person who has died.

So, I encourage you to get over the fear of dealing with your estate planning. Not doing it should scare you more. If you're a parent, you have even more reason to make it a priority — estate planning is about more than your assets and possessions. If something were to happen, who is going to look after your kids and have their interests looked after? Would you be happy for your kids to be split up and put into foster care?

How about tax? It is important to consider the outcome of your objectives. The tax payable on a benefit is impacted by the tax status of the person that receives the money or benefit. The ...