Murray Callaghan, Callaghan Wealth Management
As financial planners, we delve into the intimate details of people’s money and their goals. Wealth transfer via estate planning and the gifting of monies are common topics. Here are a few considerations and comments to provoke your own thought.
Financial assistance while you are alive allows you the pleasure of seeing these gifts at work. It also allows you to decide where more help may be required or worthy. Education, home ownership, debt relief and charitable giving are common.
Fair doesn’t necessarily mean equal. You decide who gets what and how. There are many products under the life insurance umbrella that ensure efficiency, privacy and probate bypass.
If your beneficiaries are not very responsible with money now chances are they won’t be any better later. Structuring your affairs so that an income stream using an instalment annuity or through the creation of a trust may be alternatives to a lump sum.
Your best intentions and desire to simplify the process can have unanticipated impacts on your estate plan. Tread very carefully before changing the registration on any of your banking, financial accounts or real estate property.
Mixed marriages and incompatible siblings often create unique challenges in estate equalisation. Seek the counsel of a lawyer or other qualified professional as to your options and the best route to accomplish.
Charitable giving may provide both favourable tax consequences and a lasting legacy. One needn’t have a wing at the hospital or community park named in their honour as there are many foundations, non-profits and community and international organizations working for the greater good.
Finally, don’t delay. It won’t be any easier later.