Is your family’s future financially secure?

We all want the best for our families, and we work hard to provide for them every day. But what happens when we’re not around? As much as we’d rather not think about the eventuality of death, it’s unavoidable and a lack of prior planning can compound the heartbreak of those you care for when your time comes.

So what can you do now to help make your family’s future financially secure? Read on to find out…

Review your insurance policies

While many Australians have current insurance policies, research suggests that a large percentage of the population are not adequately insured. This has left many caught short when it comes to making a claim, and may not be receiving the benefits they need. Particularly as circumstances change, it is crucial to regularly review your insurance policies so that your family is financially protected in the event of sudden illness, injury, disability or death. An insurance review will assist in determining any oversights or gaps in your policies, and a financial advisor can then advise on more suitable products where applicable. Another facet of an insurance review is looking at your current premiums, and ensuring that you aren’t paying for anything you don’t need, and that what you do need is coming at a reasonable price.

Look into Estate Planning

It must be said that estate planning is not on the top of everyone’s to-do list, even though it probably should be. The somewhat morbid nature of planning for your assets after you die puts a lot of people off making the effort to put the right things in place, but it’s been shown time and time again that not being prepared can leave your family with massive financial headaches after you’re gone. The broad scope of estate planning includes creating a robust will; determining your power of attorney and setting up asset transfers. Another aspect is appointing a legal representative whose role it is to ensure your estate’s wishes are strictly adhered to. Having your estate in order well ahead of time means not only will you have the peace of mind knowing your assets will go to the people you choose, but that it’ll mean greater financial security for your family moving forward.

Check your business structure

If you run a business, its structure may affect how the business and its assets & shares are distributed if you were to pass away. Generally speaking, a sole trader business simply ceases to operate upon the owner’s death, and what happens to the business is carried out according to your will, if it is up to date and includes those provisions (e.g. ownership is transferred to your spouse). While this provides a bit of closure and assuredness, this may not provide your family with the financial security you might like. In the case of a company, your business will enjoy what’s known as “perpetual succession” – where as a director if you passed away, the company continues to operate and shares in the company may form part of a will. If you are unsure of how your business’ structure might affect the distribution of your assets, get in touch with an experienced accountant.

Author: Nigel Plowman, Director, McKinley Plowman

Prior to forming McKinley Plowman, Nigel specialised in management consulting and international accounting, enjoying success in Australia and in the United Kingdom.
His extensive experience in management consulting, international accounting and innovative tax structures has been a major driver in the success of McKinley Plowman as well as the many businesses he has steered towards new levels.
Nigel is dedicated to fast-tracking his client goals with cutting edge tax and business strategies. He is a member of the CPAs and the Taxation Institute of Australia and enjoys developing tax strategies that work well here and around the world.