Estate planning isn’t just for the wealthy — it’s for anyone who wants to protect their family, assets, and legacy. It ensures that your wishes are respected and that your loved ones are looked after when you’re no longer around.
Despite its importance, many Australians put estate planning off until it’s too late. A 2024 survey by the Australian Securities and Investments Commission (ASIC) found that more than 50% of adults don’t have a valid will. Without a proper plan, your estate could be distributed according to state laws rather than your preferences — creating stress, conflict, and financial hardship for your family.
At its heart, estate planning is about peace of mind — knowing that everything you’ve worked for will benefit the people you care about most.
1. Start with a Legally Valid Will— and Strategic Planning Beforehand
A will is the foundation of every estate plan. It outlines how your assets — such as property, savings, investments, and personal items — should be distributed after your death.
However, it’s important to note that financial advisers cannot draft a will. That responsibility lies with a qualified estate planning lawyer. What we can do at Retirewise is help you prepare the financial strategies that sit behind your will — ensuring your assets are structured tax-effectively and that your intentions are achievable before your solicitor finalises the legal documents.
The disposal of assets in accordance with your will may have tax implications, including capital gains tax (CGT). With careful planning, there are many ways to make your estate as tax-effective as possible for your dependents and beneficiaries.
For example:
- The proceeds of an insurance policy paid from a superannuation fund are tax-free if paid to dependants.
- Distributing an asset (rather than selling it and distributing the proceeds) may defer CGT until the beneficiary later sells it.
- Using discretionary trusts can help minimise the tax a beneficiary pays on an inheritance.
- Establishing testamentary trusts can be an effective way to provide an inheritance to young children while protecting the assets until they are older.
Your financial adviser can help you explore which strategies best suit your personal situation before your lawyer drafts your will. This ensures that your financial and legal documents work together — protecting your assets, legacy, and loved ones.
Ways We Can Help You!
At Retirewise, our role is to work alongside your solicitor to ensure your estate plan is both financially efficient and aligned with your broader goals. We can:
- Consult with your solicitor to set up the right financial structures to manage your affairs if the unexpected happens.
- Source personal life cover that suits your needs and family situation.
- Investigate tax-effective options for distributing your wealth to family and beneficiaries.
- Provide strategic financial advice to ensure your wishes are achievable and your family is cared for in the event of your death.
Learn more about our Estate Planning Advice in Sydney
2. Appoint Trusted Decision-Makers
Estate planning isn’t only about what happens after you pass away — it’s also about ensuring that your affairs are managed if you become incapacitated or unable to make decisions.
Consider setting up:
- Enduring Power of Attorney (EPOA): Allows someone you trust to manage your financial and legal matters if you can’t.
- Enduring Guardianship: Enables a trusted person to make lifestyle, health, and medical decisions on your behalf.
- Advance Care Directive: Documents your healthcare preferences and treatment wishes should you become unable to communicate them.
These documents ensure that your voice is still heard, even in difficult circumstances, and that decisions reflect your personal values.
3. Review Beneficiaries on Superannuation and Insurance
Superannuation and life insurance don’t automatically form part of your estate. Instead, they’re generally distributed based on the beneficiary nominations you’ve made with your fund or insurer.
There are two main types of nominations:
- Binding nominations: Legally require the fund to pay benefits to the nominated beneficiaries.
- Non-binding nominations: Allow the fund to consider your nomination but retain discretion over who receives the benefits.
Regularly review and update your beneficiaries — particularly after major life changes such as marriage, divorce, or the birth of children — to ensure your loved ones are properly protected.
Read More: Protecting Your Retirement Dreams: The Role of Insurance in a Solid Financial Plan
4. Protect Family Wealth with a Testamentary Trust
For families with complex financial situations, a testamentary trust can be a powerful tool. It’s a type of trust established through your will that comes into effect upon your death.
Testamentary trusts can:
- Protect assets from creditors or ex-partners
- Provide tax flexibility for beneficiaries
- Safeguard inheritances for minors or vulnerable family members
For example, rather than leaving assets directly to children, they can be held in trust and distributed according to your instructions. This approach helps ensure long-term financial security and protection for your family.
Retirewise can work with your legal and tax professionals to design estate planning structures that preserve your wealth across generations with their experience in estate planning advice in Sydney
5. Plan for Business Succession (If Applicable)
If you own a business, estate planning should include a clear succession plan. This ensures your business can continue to operate — or be transferred or sold — smoothly and in accordance with your wishes.
A strong business succession plan includes:
- Nominating who will take over ownership or management
- Setting out valuation and transfer procedures
- Aligning insurance, tax, and super arrangements
Without a plan, your family or business partners may face significant challenges, including disputes or unexpected tax consequences.
For comprehensive guidance, see our Retirement Planning Services page for advice on aligning your business and personal goals.
6. Minimise Tax Implications for Your Beneficiaries
Thoughtful estate planning can help reduce tax liabilities for your estate and beneficiaries. Superannuation death benefits, for instance, may be tax-free for dependents but taxable for others, such as adult children.
Other potential tax considerations include:
- Capital gains tax (CGT) on property or investment transfers
- Income tax from assets held in trusts
- Superannuation taxes on lump sum payouts
By integrating estate planning with broader financial and retirement strategies, you can maximise what your loved ones receive and minimise unnecessary tax burdens.
7. Keep Your Plan Up to Date
Life changes — and your estate plan should evolve with it. Major life events like marriage, divorce, the birth of children, or acquiring significant assets should always trigger a review of your plan.
You should also review your will and estate documents every three to five years to ensure they still reflect your wishes and current laws.
Retirewise provides ongoing support through regular estate plan reviews to ensure your documents stay relevant and effective.
8. Communicate Your Wishes Clearly
Even the most detailed estate plan can lead to conflict if your intentions aren’t clearly communicated. While it can be uncomfortable, having open conversations with family members can prevent misunderstandings and disputes later on.
- Explain the reasoning behind key decisions (such as unequal distributions or specific bequests).
- Let your executor and beneficiaries know where to find important documents.
- Keep your advisers’ contact details accessible to those who’ll need them.
Clarity and communication can go a long way toward preserving family harmony — an essential part of protecting your legacy.
The Bottom Line: A Lasting Legacy Starts with Planning
Estate planning is one of the most meaningful gifts you can give your loved ones. It ensures your affairs are handled smoothly, your values are honoured, and your assets go exactly where you intend.
While DIY wills and online templates may seem convenient, professional guidance ensures every legal and financial detail is properly covered.
At Retirewise, we help Australians craft comprehensive estate plans that integrate seamlessly with their superannuation, retirement, and financial strategies — creating peace of mind for today and security for tomorrow.
Secure Your Legacy with Retirewise
Your legacy deserves more than good intentions — it deserves a plan. Whether you’re reviewing your will, setting up a trust, or ensuring your super is passed on tax-effectively, we’re here to help.
Contact Retirewise today to speak with an experienced financial adviser in Sydney and protect what matters most — your family and your future.