Estate planning provides you with peace of mind that your estate is passed on, as set down in your Will, in the most efficient and tax effective way possible. Estate planning will help to establish your current financial situation, decide what you want to happen in the event of your death and makes the appropriate legal and financial arrangements. Good estate planning is a critical part of any retirement plan.

A good estate plan will:

• ensure that the ownership and control of your assets are passed onto your intended beneficiaries

• minimise tax being imposed on the income and capital gains earned on these assets

• protect those assets should a beneficiary be involved in any legal difficulties

• greatly improve your family's wellbeing, both financially and emotionally, after you have passed away

• make your wishes known, reducing the potential for dispute between family members

 Advance planning, good advice, and the proper assembly of important documents will all ensure that your estate is handled in a hassle free manner.

The following points should be considered when developing a thorough estate plan:

• Asset protection

• Probate avoidance

• Avoidance, minimisation and deferral of tax liabilities

• Planning for illness or incapacity

• Selection of guardians, personal representatives and other fiduciaries

• Formation of family limited partnerships and other business entities

• Succession strategies for family businesses.

All assets of any value should be considered when developing an estate plan, including real estate, business and farm interests, investments, retirement plan, life insurance proceeds, personal property, art or other collections, cash and personal effects. The estate plan will then be formulated by taking into consideration the fair market value of your assets, how you own them legally, their growth potential, their liquidity, and what assets should be passed to specific individuals.

Everyone can benefit from estate planning, regardless of the amount of money you have, your age, or your family status. Estate planning encompasses:

• Will preparation

• Appointing a trustee and/or executor to carry out your wishes as per your will

• Determining whether a Power of Attorney is required and who it should be

• Establishing a discretionary or family trust to protect your wealth

• Establishing a testamentary trust to reduce your family's tax liability after the main breadwinner's death

Please speak with one of the financial planners at Intellichoice or your solicitor to ensure that you are aware of all the advantages and disadvantages of establishing a discretionary or testamentary trust. The best option will then be put forward to you, but this will depend on your own particular circumstances, both in regards to your finances and family.

If you would like to learn more about estate planning, or to devise a tax effective estate planning strategy tailored to meet your financial circumstances, speak to one of the qualified financial planners at Intellichoice by calling 1300 55 10 45.