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Estate planning key considerations for young parents in Perth, appointing legal guardians

Legal Guardian for minor children

The most important aspects of estate planning for young parents in Perth are:

  1. One of the crucial steps in estate planning for young parents in Perth is appointing legal guardians for minor children in the event of both parents passing away. This decision, documented in the will, is paramount as it ensures the children are cared for by the chosen guardians, avoiding potential conflicts and leaving the decision solely to the courts. It's advisable for both parents to name the same guardians in their separate wills to maintain consistency and avoid any future disputes.

  2. Drafting a will to ensure that in addition to appointing trusted guardians for minor children, assets are distributed according to the parents' wishes rather than intestacy laws. Wills can include specific bequests of personal items or real estate to children.

  3. Setting up testamentary trusts in your will is a strategic move that can provide long-term financial security for your children. These trusts manage your children's inheritance until they reach a specified age, usually 18 or older. This prevents minors from mismanaging large sums and ensures the funds are used for their care and education. Moreover, trusts also provide tax benefits and asset protection from bankruptcy and divorce, giving you the confidence that your children's financial future is secure.

  4. Considering allowing guardians to live in the family home rent-free for continuity, leaving letters with instructions on raising the children, and covering non-traditional assets like cryptocurrencies.

  5. Reviewing life insurance coverage and beneficiary nominations to ensure sufficient funds for the children's care if parents pass away. Insurance proceeds can be paid to the estate and managed by the trustee.

  6. Reviewing superannuation beneficiary nominations, which may bypass the estate and be paid directly to the trustees of a minor superannuation proceeds trust, unless directed to the estate through binding nominations.

  7. Granting powers of attorney and enduring guardianship to chosen individuals to make financial and medical decisions if the parents are incapacitated.

  8. Reviewing and updating the estate plan as the family situation changes, such as the birth of more children or changes in financial circumstances.

The key priorities are legally documenting guardianship wishes, protecting the children's inheritance through testamentary trusts, and ensuring assets are distributed according to the parents' intentions through a valid, regularly updated will and estate plan.

Call us on 04211 45637 for advice today.


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