Estate planning for Generation X
Why consider estate planning when you’re in your 40’s?
After all, you’re a busy Generation X with work and family commitments – it can feel hard enough getting your tax done every year!
If you’re a member of Generation X, estate planning won’t always be top of mind.
But life goes by fast and planning for your family and partner when you’re not here is important.
Here are 3 things to focus on.
1 Life insurance
Seen a lot of ads on TV urging you to take out life insurance to protect your family when ‘you’re no longer around’?
Before you take out separate life insurance, make sure you find out from your superannuation fund what level of cover you’ve got.
Once you’ve got this figured out, it’s time to sit down and look at your assets and liabilities.
Now, here’s the hard question to ask – and one of the reasons why many people put off thinking about estate planning!
Would the amount you’re covered for pay off your liabilities and provide a safe financial future for your family?
We know it’s hard to think about worst-case scenarios, but estate planning is an important part of planning for the future.
We’d love to help you figure this out, contact us here.
2 Make or update your Will
Having a clearly written, legal, up to date Will sorted out is important.
Your Will is a legal document that indicates how you’d like your assets distributed after your death.
It also includes the person (or organisation) you have given responsibility to for carrying out the wishes noted down in your Will.
Making sure you have a Will ensures that:
- Disagreements can be eliminated among people who expected to benefit from your estate,
- It’s clear who will be guardians of any minor children you may have,
- Your assets are divided according to your wishes,
- Your family and executors are clear about how you’d like your affairs managed, and
- Your estate is settled quickly.
Dying without a will can result in your estate taking a longer time to settle than if you have one.
It can also lead to confusion about whom will manage your estate and family disagreements about asset distribution.
3 Organise an enduring power of attorney
As a Generation X you’ve probably got some elderly relatives who have organised powers of attorney.
But what is a power of attorney and why should you organise one?
An enduring Power of Attorney is a legal document that allows you to appoint a person (or persons) of your choice to manage your financial affairs and assets if you’re not able to do so (e.g. if you’re ill, overseas or in an accident).
A medical Power of Attorney is a legal document that allows you to appoint someone to make medical treatment decisions on your behalf if you become physically or mentally incapable of doing so for yourself.
Each Australian state has their own laws – here’s the link to Victoria’s.
Like some help getting your head around estate planning? Call us on 1300 296 388
The advice provided in this blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. For our full disclaimer, please click here.