Concessional contributions are types of contributions made into your super fund from your employer where…
One of the most important parts of estate planning is figuring out how to divide your assets when you pass away. And while this is already quite tricky as is, it becomes even more difficult if you don’t have any obvious heirs. In this situation, it’s best to inform yourself as much as you can so you can figure out how to approach estate planning.
To help you out with this, we thought it would be practical to put together a brief article on this subject. If this is something that you want to learn more about, read as we discuss everything you need to know about estate planning without heirs.
Why You Need an Estate Plan
Every person needs to have their Will done. This is true regardless of whether you have children or beneficiaries, or you don’t believe you have a lot of money or other possessions to bequeath. A last Will and Testament is the legal document used to guide the distribution of a person’s real and personal property after death. If you die without a Will, the state determines how your property will be distributed.
Aside from your Will, your estate plan includes a Power of Attorney and Enduring Guardianship. This means you’ve designated someone/s to make decisions in your stead if you are rendered incapable of making significant choices and decisions. This person/s will be in charge of making decisions regarding your finances, welfare and health.
Understanding the Inheritance Hierarchy
When you don’t have direct beneficiaries, the main thing you have to understand when it comes to estate planning is the inheritance hierarchy. To put it simply, the process to determine your beneficiaries goes like this: the surviving spouse is usually the first, followed by children and grandchildren. If none of those can be identified or are unable to handle your affairs, the next in line is your parents, siblings, or grandchildren. If none of those can be identified, your assets can go to grandparents, aunts and uncles, or even the state.
What Are the Alternatives to Heirs
If you really don’t have a beneficiary to bequeath your assets to, you can designate a beneficiary who will receive your assets when you pass. You have a slew of different options to choose from, which range from private foundations to charitable trusts. Now, there is no one best option when it comes to choosing an entity to receive your assets, as it all really comes down to your personal preferences. With that being said, it would be best to discuss your options with a financial adviser to ensure that everything goes smoothly.
Know More and Talk to An Expert Today!
We hope this article proves to be useful when it comes to helping you navigate estate planning. While things might be a little more complicated when you don’t have an apparent beneficiary, it’s not something that you won’t be able to plan around. Be sure to keep all of this information in mind so that you can make the most informed decision when it comes to your estate planning efforts.
Secure your future with Coastal Advice Port Macquarie. We offer estate planning financial advice to help you save your loved ones from future stress and make sure they are taken care of even when you are gone. Consult with us today to learn more.
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.