Estate planning, explained clearly

Estate planning is the process of organising how your assets, financial interests and other wealth should be managed and transferred during your lifetime and after your death. It can involve tools such as a Will, nominations, succession arrangements, trusts and other appropriate structures depending on the individual's circumstances.

Estate planning can help ensure that your wealth is transferred according to your wishes and can provide greater clarity for your family and beneficiaries. It can also help organise assets, reduce potential disputes and make the transfer of wealth more structured.

No. Estate planning can be relevant to anyone who has assets, dependants or specific wishes about how their wealth should be handled. The complexity of an estate plan may vary depending on the size and nature of the person's assets, family circumstances and objectives.

A Will is a legal document through which an individual can express their wishes regarding the distribution and management of their assets after their death, subject to applicable law. A properly prepared Will can provide clarity about how assets should be dealt with and who should benefit from them.

A Will may generally be handwritten or typed, and the legal requirements for its validity must be followed. A Will does not necessarily have to be prepared on stamp paper. Because validity and execution can depend on applicable law and individual circumstances, professional legal guidance may be appropriate when preparing one.

Registration of a Will is not generally mandatory merely for the Will to be valid, provided the applicable legal requirements for execution are satisfied. Whether registration is advisable can depend on the circumstances, so appropriate legal advice should be obtained when preparing or registering a Will.

An Executor is a person appointed under a Will to carry out the wishes expressed in the Will and undertake the necessary steps for administering the estate. Choosing a trustworthy and capable Executor can help make the administration of the estate more organised.

A Will generally needs to be executed in accordance with the applicable legal requirements, including the requirement for witnesses. As a practical precaution, it is generally advisable to use independent witnesses who are not beneficiaries under the Will. The specific legal requirements should be confirmed with a qualified legal professional.

Probate is a legal process through which a competent court establishes the validity of a Will and authorises the executor to administer the estate in accordance with it. Whether probate is required depends on the circumstances and applicable law.

Yes, a Will can generally be changed or revoked during the testator's lifetime, subject to applicable legal requirements. It is advisable to review the Will after major life events such as marriage, divorce, birth of a child, death of a beneficiary, acquisition of significant assets or major changes in family circumstances.

No. A nomination and a Will serve different purposes and operate under different legal frameworks. Nomination generally identifies the person designated to receive or deal with an asset or policy according to the relevant rules, whereas a Will expresses a person's wishes regarding the distribution of their estate. Their interaction can depend on the nature of the asset and applicable law.

A Will does not necessarily have to be drafted by a lawyer in every situation. However, professional legal assistance can be valuable where an estate is complex, there are multiple beneficiaries, significant assets, business interests, family considerations or potential succession issues. Prospera FinTech can help clients understand the financial aspects of estate planning and coordinate with appropriate legal professionals where legal drafting or advice is required.