Estate Planning: Key Conversations to Have with Loved Ones

After major life events, many people push off difficult conversations about death, thinking it’s too soon to plan. But the truth is, having these discussions with loved ones can provide great relief when the inevitable happens. It ensures your affairs are in order and reduces the chance of confusion or missed details.

At Home Care Assistance Central Coast, we’ve witnessed the emotional and logistical challenges families endure when plans aren’t in place. We’re here to help you prepare today, so that when the worst happens, loved ones can experience less stress and focus on what truly matters.

Where to Start Planning

Start with the basics: a valid will and an enduring power of attorney. The will ensures that your assets are distributed as intended, and the power of attorney helps someone you trust make financial decisions on your behalf if you’re unable to do so.

In addition to these legal documents, make sure you’ve prepared a record of your assets and any debts. Collecting this information, along with passwords and online account details, can prevent loved ones from being locked out of critical accounts. Also, make sure family members know how to access this information in case of emergencies.

Funeral arrangements are another key area to consider. Whether you’ve pre-paid or simply have preferences for your send-off, sharing those details now will help family members honour your wishes. Meeting with your financial planner, lawyer, and other professionals with your children present can also help establish the right contacts and ensure a smooth process.

Decluttering your home is also a practical step to take now. It makes life easier for your loved ones, who would otherwise need to sort through everything after you’re gone. Plus, it gives you the opportunity to organize and pass down important heirlooms and keepsakes.

If you know that you’ll be required to act as power of attorney for an elderly loved one, there are some critical questions you should ask them, to make the process much smoother.

10 Essential Questions for Managing an Estate:

1. Is there a valid will in place?
2. Have you set up an enduring power of attorney?
3. Have you prepared for medical decisions with an enduring power of guardianship?
4. Is your superannuation death benefit nomination binding and up to date?
5. Are all assets, liabilities, and important documents in one accessible place?
6. Is there a list of passwords and pin numbers for digital accounts?
7. Have you informed someone about how to access this information?
8. Have you made any funeral arrangements or left instructions?
9. Who are the key professionals managing your affairs, and how can we contact them?
10. Have you started clearing out unnecessary belongings to ease future transitions?

Taking these steps now will help ease the burden on your loved ones and ensure your estate is managed according to your wishes.

Ref: Nick Bruining, Your Money, “The 10 questions kids should ask Mum and Dad to help manage their estate when they’re gone”  Mon, 12 August 2024