Many people think of estate planning as simply deciding who will inherit their money and property. That’s just scratching the surface! A well thought-out and carefully structured estate plan allows you to put money or property in the right hands at the right time, and this could be well before you die.

In the past, all that most people needed in order to get the job done properly was a will. Apart from the simplest cases, those times have long gone. It’s still a very important document, but needs to be part of a bigger plan which may include enduring powers of attorney and possibly even a trust.

We define estate planning as being the overall process of building up and then disposing of your wealth (whether property or financial assets or both) in such a way as to achieve your long-term financial goals. If the planning is done properly then your wealth will be transferred to those whom you want to benefit from it in a tax-effective manner and with minimal legal involvement. This transfer may occur before or after your death, or both.

A will is a legal document that records your instructions for dealing with your assets after you’ve died. Matters commonly covered in wills include-

• Transferring financial assets and property to your chosen beneficiaries—family, friends, charities, and so on
  
• Appointing guardians to look after your children
  
• Your instructions regarding your funeral

Whenever your circumstances change, e.g. as a result of marriage, separation, etc.—your will needs to be updated to ensure that your wishes are in line with your new situation.

Every year a number of New Zealanders lose the capacity to manage their own affairs, whether through accident, illness or degenerative conditions such as Alzheimer's. That’s why it’s a good idea to appoint an attorney to manage your affairs if the need arises.

By creating an enduring power of attorney you have the peace of mind that comes from knowing that someone you trust will be empowered to make the important decisions that have to be made. This can save a lot of time, money and anguish when things are already very difficult.

There are two types of enduring power of attorney:

• Assets and property
  
• Personal care and welfare

We recommend that you consider putting types in place next time you update your will.

Trusts are becoming an increasingly important part of the way we manage our financial affairs.

Through a trust you can protect the interests of your beneficiaries, whoever they might be, by transferring your wealth without losing complete control of it.  A trust is governed by a legal document called a trust deed that lays out the rules under which it will operate.

Reasons for establishing a trust include:

• Protecting personal assets from business risks such as legal action
• Providing for dependants and supporting worthy causes
• Maintaining family control of property and assets
• Protecting assets within a relationship

It should be noted that trusts are not suitable for everyone.We recommend you speak toa specialists for advice suited to your particular needs.

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