Recently, advisers have asked us about the relevance of employment in estate planning, particularly for families with a single breadwinner.
For households relying on a single income, the stakes are high. The breadwinner's role in estate planning is crucial to ensuring financial stability in the event of death or incapacity. Here’s why:
✅ Income Replacement: Life and disability insurance to safeguard the family’s future.
✅ Immediate Liquidity: Access to funds for funeral costs and day-to-day living expenses.
✅ Debt Management: A clear strategy for settling outstanding debts and liabilities.
✅ Dependent Care & Education: Long-term planning to secure loved ones' futures.
✅ Tax Efficiency: Minimise the impact on assets through strategic measures.
If the breadwinner owns a business, succession planning is essential. Key considerations include:
Reviewing shareholder agreements, trust deeds, and company constitutions.
Establishing buy/sell agreements to handle stakeholder rights and obligations.
Determining the business’s valuation and exit strategies upon a stakeholder's death.
A thorough estate plan ensures that families and businesses remain financially stable. Effective communication, legal documentation, and professional advice are vital for a seamless process.
Comentários