As we approach the end of the year, it’s a good time to reflect on important tasks that often get postponed. One crucial area to address is ensuring your family’s financial security after you’re gone. Here are three key items to review and update as you plan for the new year:

1. Life Insurance

Life insurance is essential for providing financial support to your loved ones in the event of your passing. It can cover expenses such as funeral costs, outstanding debts, and ongoing living expenses. While many people have life insurance through their superannuation fund, relying solely on this default cover may not be sufficient. It’s important to assess whether the coverage amount meets your family’s needs and consider additional policies if necessary.

2. Death Benefit Nominations on Your Super

Reviewing your death benefit nomination on your super balance is crucial. This nomination determines who will receive your superannuation benefits when you pass away. There are different types of nominations to consider:

• Binding: Legally binding and ensures your super is distributed according to your wishes.
• Non-binding: Acts as a guide for the trustee, but they have the final say.
• Lapsing: Needs to be renewed periodically to remain valid.
• Non-lapsing: Remains in place until you change it.

You can nominate a person or your estate (Legal Representative). If you choose a person, they must be a SIS (Superannuation Industry Supervision) dependent, such as a spouse, child, or financial dependent. Often, people are surprised to hear that their nomination is invalid if a parent or sibling is not a financial dependent.

3. Will & Power of Attorney

Having a will and power of attorney is vital for ensuring your assets are distributed according to your wishes and that someone you trust can make decisions on your behalf if you’re unable to.

• Will: A legal document that outlines how you want your assets distributed after your death. It allows you to name an executor to manage your estate and can also be used to appoint a guardian for minor children.
• Power of Attorney: A legal document that authorises someone else to make decisions on your behalf if you become unable to do so.

You may also want to consider a Testamentary Trust, which is established according to the instructions in your will. This trust can manage and distribute your assets to beneficiaries under specific conditions, such as reaching a certain age or milestone.

Take Action Over the Christmas Period

The holiday season is an ideal time to review and update these important documents. Abbotts Business Group can assist you with all three areas through our Personal Insurance, Wealth Management, and Legal divisions. By addressing these matters now, you can ensure that next Christmas, you have peace of mind knowing everything is sorted.

Book an Appointment for the New Year

Don’t wait—book an appointment with us for the new year to get started on securing your family’s future. Our experts are here to help you every step of the way.

Take the first step today and secure your family’s future.