A comprehensive, detailed estate plan is an essential component of the effective management of your personal affairs. A good estate plan documents your wishes for the distribution of your assets after your death and an action plan and structure to enable the effective execution of those requirements.

An effective estate planning process can provide peace of mind and clarity for your beneficiaries when you die.

Estate planning can be a confronting task, but it’s a vital one. Here we take a quick look at some common estate planning mistakes:

  • Failure to prepare a will. The starting point for your estate plan is your will. This documents your instructions for how your estate is to be distributed. Remarkably, according to Australian government estimates almost half of people in Australia die without a will.
  • Failure to update your will. Preparing a will is a great start, but it’s equally crucial to keep it current. Over time, your circumstances will change and your wishes for the distribution of your estate may change along with them. Life has a habit of throwing surprises at us, both good and bad. A new baby, a grandchild? Divorce? Major illness? Or perhaps you’ve acquired new assets or received an inheritance which changes your plans? In short, life is unpredictable and your estate plan must be responsive to the changes it brings.
  • Procrastination. In our experience, most people acknowledge the importance of estate planning. Yet they continue to procrastinate, unable or disinclined to engage in the task, often for many years. From our observations, the causes of this reluctance vary widely. Some are unwilling to engage in what they may see as a morbid or depressing task, while others are deterred by the complexities involved. Still others may feel that since they’re in good health today, they can deal with estate planning at a later stage.
  • Failure to plan beyond your will. While a will is the foundation of your estate plan, an effective plan relies upon many other details. Examples are the establishment of testamentary trusts, documentation of superannuation beneficiaries, powers of attorney and/or guardianship and also the establishment of an advanced health directive.

At Kensington Wealth, we pride ourselves on our detailed approach to each client’s individual situation and requirements. Contact us today – and take the first step towards peace of mind for you and your loved ones.