In Show 112- Fast Fix Monday – What to look out for if you write your own will originally broadcast on Facebook Live on Monday 23 July 2018.
Show Notes
We’ve been talking about estate planning and retirement all this month. A key part of that process is writing a will that clearly lays out your wishes for friends and family. Some people decide to write a will by themselves. This isn’t a method we recommend. Given the complexities of estate law, having a professional to help you is for the best. But for those that are set on doing it for themselves here are some tips:
Guardianship of children
Who should take care of any minor children in the event of your death. This isn’t an easy question to answer but there are some things you should consider. Finding people who share your values or beliefs is important. As is finding someone that your kids are already familiar with.
Assets
Make sure you have a clear list of all the assets you own. Creating a list of everything along with their estimated value will go a long way to helping you to decide how to divide the estate.
Cherished items
When you’re making a list of your assets don’t forget to include the smaller things that may not have much value but will still mean a lot to your family. When you write the will you need to make sure that you include those things in a letter of wishes
Appoint an executor
This is the single most important thing you will do during this process. The executor essentially takes over the duty of administering your estate upon your death. They will make funeral arrangements and then make sure your wishes are carried out. It doesn’t have to be a family member and they don‘t have to be a beneficiary.
Pick your beneficiaries
Deciding who should get what is another big decision. It can be people, charities or other organizations. If you are going to exclude someone in the family you definitely need to consult a lawyer to make sure it’s done correctly.
Pick the right charities
Many charities have specific rules on wording that must be included in a will in order for the gift to be accepted.
Funeral arrangement
You don’t want to include every detail about your funeral in your will but you do want to make sure the big things are dealt with. If you want to be cremated or buried in a certain place make sure that’s include.
Include consultants details
The people that may have helped you draft the will should be listed. Those include your lawyer, financial planner and accountant.
Power of attorney
Appointing someone to make decisions for you in the event of you being incapacitated is an important part of this process. It’s a separate document from the will and the person will be able to take over in the event of an illness or accident.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 111 – Its Your Legacy You Should Decide Where it Goes originally broadcast on Facebook Live on Wednesday 18 July 2018 where we explore this interesting topic.
You can download a copy of the workbook for today here: 111 – Worksheet
Show Notes
Today on the podcast we turn the tables on co-host Craig Mason and interview him about his career and expertise on estate planning. We’re focusing on retirement and estate planning all this month and there is no better person to talk about this than Craig. He spends a large part of his work on helping people to get their affairs in order.
Estate planning is hugely important, especially for business owners. What’s going to happen to your assets after your death? Who is going to make decisions for you and your company if you become incapacitated? Power of Attorney, insurance and superannuation are all things you want to deal with in your estate plan.
Running a business usually means acquiring assets as the company grows. Just like your personal assets you need to take into account what will happen to your business assets in the event of your death. If you want those assets to go to a specific person you will have to structure your estate carefully to make sure that happens.
There are major ramifications if you die without a will. The person who decides what happens to your assets will be appointed by the court. That process can take a lot of time and money and can often end in a fight amongst competing interests. Instead, appointing an executor and a secondary executive will make this process run much smoother. If you don’t do this the costs of administering your estate will more than double.
If you die without a will the fate of your estate will be dictated by Intestacy Rules. These rules dictate how your estate will be distributed. In Queensland the first $150 thousand of your estate will go to your spouse. The rest will be distributed amongst any children, siblings or parents. If you want that money to go to specific people you need to create a will.
Some of the considerations you need to think about when planning your estate include:
- The size of the estate
- The amount of any life insurance
- Any estranged children?
- Amount of your superfund and how it should be distributed
- Power of attorney in the event of your incapacitation
- Whether you want to create a testamentry trust
There are plenty of professionals that can help you through this process. Your accountant will help you to ensure that you take care of all the proper tax implications. Your financial planner will help you to design the right way to handle your superfund. An insurance broker will make sure that all your insurance policies are in place and in order. Finally, a lawyer can help to organize all those people to make sure everyone is on the same page.
After you get all these things in place it’s really important that you update this plan every two years or if your circumstances change. If there have been deaths or births in the family you will need to update. If you have excluded someone you should review that decision regularly to make sure that your still happy with that choice. Finally, make sure you have spoken with your family about your estate plan so that everyone understands your wishes.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 110 – Fast Fix Monday – 3 tips for Setting Yourself for Retirement originally broadcast on Facebook Live on Monday 16 July 2018.
Show Notes
Today on Fast Fix Monday we’re going to share the top three tips for setting yourself up for retirement.
1. Increase your profits and personal wealth
This might sound obvious but not enough people are thinking about this. How much money do you need to retire? Figure out that number and work to achieve it.
2. Keep your lifestyle in check
Whenever your income increases your expenses seem to increase as well. Take care to keep your purchases in check. Follow the 24/7 rule. Wait 24 hours for small purchases and 7 days for big ticket items.
3. Create a money plan to save
Some people think that saving 10-15% of their income will be enough but it often isn’t. You’ll be amazed at how quickly your money will grow if you do this diligently.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 109 – Phase 8 – Estate Planning and Phase 12 – Retirement originally broadcast on Facebook Live on Wednesday 11 July 2018 we explore this interesting topic.
You can download a copy of the workbook for todays show here: 109 – Worksheet
Show Notes
All throughout July 2018 we are talking about retirement and estate planning. Figuring out who should get your estate are hugely important questions. This must be dealt with properly. Today on show we detail some of the things you should consider when creating your estate.
If you die without a will your estate will be governed by the law of intestate. Different states have different intestate rules. The money doesn’t just automatically go to the government. The estate tends to be split between spouses and children. Your shares in any businesses you own will also be split among your family members. In order to avoid that outcome you have to sit down with your lawyer to put a process in place to ensure that your estate is divided according to your wishes.
Buy/Sell Option Agreements is an agreement that is triggered upon death or incapacity. It details the sale of your shares in the business and who gets the money. This can ease a very stressful time both for the family and the business. Insurance policies can be purchased to fund the sale of those sales so the business doesn’t have to scramble for the money.
Having a will in place is incredibly important. Your will will guide the executor on how you want your assets divided. As you prepare this document things that need to be considered are how to deal with blended families or with estranged family members. Excluding people from wills can create a tremendous amount of litigation. You have to consider the fate of all your assets including the fate any companies you own in part or in whole.
Power of attorney is a document that gives another person the ability to make decisions on your behalf, including the signing of documents. That is a tremendous amount of power so you have to be sure you are crafting this correctly. A general power of attorney is used in number of circumstances. They are usually short-term and are often used when someone is out of the country. An enduring power of attorney is something different. It is a stronger document that is maintained even if the person is incapacitated. Health and financial decisions can be made by the person you entrust with this power. Once you give someone that power you may not be able to get it back so make sure you choose someone you really trust.
Advance health directives are documents that detail what you want to happen during any medical treatment. A doctor will tell you about what kinds of treatment options they will have during your time in their care. If there are certain kinds of treatments you would not want to have performed you need to detail that in this document. Those decisions would then guide your doctor in the event of your incapacitation.
Back in 1992 employers In Australia were compelled to take a portion of their workers wagers to create superannuation funds for their retirement. Most people in Australia have a superannuation fund that is managed by large institutions. There is another option. A self-managed superannuation fund is very similar to a trust. It’s a fixed trust that overseen by a trustee. The money is then divided among the members upon their retirement. One of the main misconceptions around these funds concerns the selection of the trustee. The trustee is liable for any debts incurred by the fund. A company trustee should be created instead. This protects the trustee from any debts and makes it much easier to choose a new trustee upon death of incapacitation.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
