If something were to happen to you, do you know how your estate would be handled? If you don't even know what an estate is, don't worry, as you're not alone. After all, it's not a term that is in widespread use on a daily basis, but it is nevertheless relevant to every Australian. You may know that it's a good idea to write up a will so that your dependents are taken care of, but there are other elements to consider too, all or any of which come under the mantra of estate planning. Why do you need to catch up with this terminology as soon as possible?

Focusing on Incapacity

Many people believe that their last will and testament will only be read upon their death, but this is just part of the bigger picture. If you're unfortunate enough to be injured in a serious accident and are rendered unconscious, somebody will have to take control of your affairs. Alternatively, if you are diagnosed with dementia or Alzheimer's disease and become unable to act for yourself, the same would apply.

What About Superannuation?

Take superannuation, for example. If you worked for an employer during the course of your life, it's very likely that you have paid into a superannuation fund, and your employer would have taken care of this for you. You may even have a life insurance policy as part of that fund, but you may have forgotten all about it. As time goes by, this fund may have grown to quite a hefty sum, and if you haven't paid any attention to its growth or direction, problems could arise.

Usually, you will be expected to nominate one or more individuals to receive the benefit of any superannuation policy, but if you haven't then it's far from clear-cut. Many different laws apply to superannuation and each fund is different, and there are specific rules that dictate how you can fill in those nomination forms anyway.

When you first start contributing to a superannuation fund, the last thing on your mind will be your demise, as it may well be decades into the future. However, you cannot afford to be blasé at this time, as if you don't do this properly and then forget to update your fund, it can have a serious effect on the family members left behind. The trustees of the fund may have to make this decision for you, and this can be a complicated process.

Getting Down to Detail

When you focus on estate planning correctly, you will update your superannuation details, figure out the destiny of any life insurance benefit and nominate a power of attorney. You will give any advance health directives necessary should you fall ill, deal with any family trust issues and update your will.

As you can see there's a lot involved, and it pays to work with a qualified attorney to make sure that you have it all covered.