Why Estate Planning Is Crucial No Matter How Old You Are

When estate planning comes to mind, many people consider it to be something that is done when you reach old age. It’s important for people to know that creating an estate plan can be done at any stage of your life. 

In fact, you should try to look at developing an estate plan as early as possible!

What Is An Estate Plan?

An estate plan involves making arrangements for your assets and affairs in the event of your death – or if you get to a point in life where you are no longer capable of making your own decisions. 

It can be quite a confronting process but just like all financial planning, it is important. 

An estate plan is designed to help protect your family and loved ones in more ways than one. 

By having an estate plan in place, you can:

  • Ensure your family or loved ones know what decisions to make on your behalf if you become unwell or in a position where you can communicate your needs.
  • Establish where you would like your assets to go when you pass away, to ensure they go to the right people.
  • Ensure you transfer control and ownership of your ‘estate’ in a timely and tax-efficient manner, which can help relieve stress on your loved ones during an emotional time.

What does estate planning involve?

The common elements of an estate plan may include a will, funeral instructions, and plans for transferring your assets. 

Aside from that, there are other documents that are important for you to consider including:

  • Advance Care Directives - is a document of your wishes, preferences and instructions for future health care, end of life, living arrangements and any other related issues that must be respected and followed by all parties involved.
  • Enduring Powers of Guardianship - you can legally appoint a person or an organisation to make decisions about your health and lifestyle if in the event you are unable to make these decisions for yourself.
  • Powers of Attorney - General power of attorney is a type of power given to a person that allows them to make financial and legal decisions for the principal until that power is changed, cancelled, or limits specified.
  • Testamentary Trust - - This allows you to appoint someone (a Trustee) to manage the assets you have placed in a trust which comes into effect once you have passed

This allows you to include conditions on the distribution of your assets and how they are to be managed by your beneficiaries. 

For example: If you have minor children or children with a disability, who will not be able to manage their inheritance immediately, you can decide through a Testamentary Trust how your assets are to be managed. This can also extend to how you would like your income from the Trust to be used for the benefit of your beneficiaries. 

Testamentary Discretionary Trust allows you, depending on the terms of your Trust, to provide your appointed Trustee with the power to decide how your assets and income in your Trust are to be managed and distributed to your beneficiaries.

The benefit of a Testamentary Discretionary Trust, allows your trustee to use their discretion in the case of any unexpected circumstances in the lives of your beneficiaries after you have passed. 

Benefits of a Testamentary Trust include:

  • Protection from Bankruptcy:

If in the case your beneficiary is bankrupt, your trustee can protect your assets by not passing the inheritance into that beneficiary’s name for the purpose of ensuring it doesn’t become a part of the beneficiary’s estate for bankruptcy. 

  • Divorce and Relationship Breakdown:

Under the present law, your Trust may not be subject to a Family Court Order in the event of marriage or relationship breakdown.

  • Taxation Advantages:

Taxable income generated by the Trust can be allocated among the beneficiaries of your Trust in a tax-effective manner. 

Why is estate planning crucial no matter how old you are?

Financial Support

This, of course, is directed towards your loved ones. When you have an estate plan that’s made with the support of professionals including your financial adviser, it means those near and dear to you can access your wealth when you pass. It allows you to make provisions for children and anyone else you see fit to benefit from your hard-earned money over your life.

Peace of Mind

Easily one of the most key advantages of developing an estate plan can allow you to worry less about what will happen should you fall ill or worse. It’s always helpful knowing you have done what you can to support your loved ones if anything were to happen to you.  


Estate plans are best done with professionals including a lawyer, accountant and a financial planner. The last thing you want is for your loved ones to face heavy taxes or negative effects from your estate. You can minimise any obligations on that end for them as you draft your estate plan.

Having an estate plan is one thing, but it also has to be updated regularly – especially as you go through big life changes. Despite what many people think, there’s more to an estate plan than just the will. An experienced financial planner can help guide you through the entire estate planning process and build a solution that matches all your needs and wants. 

Trying to find a financial advise in Bowral or the NSW Southern Highlands? 

Reach out to Poole Advisory today We can help you with all your estate planning and financial advice needs.


Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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