Jacqueline Barton

Like life insurance, planning for the end can be a difficult and confronting process. The best way to save your family from emotional and financial hardship, should you pass suddenly or be unable to manage your affairs, is to plan your estate.

Estate planning involves making important decisions as to who will be managing your affairs, who will be inheriting your assets, and ensuring that your assets are distributed according to your wishes.

If you haven’t yet considered implementing an estate plan, here are some of the important elements.

What makes up an estate plan?

• Will – a will outlines how your assets will be distributed after your death and can include things such as who will look after your children if they’re still minors, naming an executor of your estate, charities you wish to contribute to and funeral plans.
• Power of attorney – this is a person you appoint to make important decisions about your finances and healthcare should you become incapacitated, with many electing a trusted family member.
• Advance health care directives – a legal document that allows you to specify your healthcare preferences such as medical treatments and end-of-life care.
• Superannuation death benefits – when someone dies, their super provider typically pays out the person/persons nominated as their beneficiaries, known as the ‘super death benefit’. This nomination could be binding or non-binding. A binding nomination means your super fund is required to pay your nominated people in the proportions you have specified. A non-binding nomination means the fund has some discretion over where your money goes.
• Guardianship – appointing a guardian for minor children will mean they will be looked after by a person you trust in the event of the parents’ death or incapacity.
• Trusts – a legal arrangement where the trustee holds and manages assets on behalf of the beneficiary. Trusts allow individuals to transfer assets to their beneficiaries in a more tax-efficient manner.
• Life insurance – incorporating life insurance as part of your estate plan means your loved ones can be financially looked after when you pass, and use the funds to pay off any debts you leave behind.

What does this mean?

As you can see, there are quite a few elements that make up an estate plan, but overall, the main purpose is to protect your assets and ensure they’re properly distributed. Without one in place, you run the risk of them being allocated according to state law which may not reflect your preferences, your estate could be subject to higher taxes and your control is limited. It also takes the difficult decision-making away from your family and beneficiaries, creating a less stressful time for them and minimising disputes.

If you haven’t created an estate plan or are interested to learn more, get in touch with your financial adviser to get started.

It seems like every other week there’s another cyber-attack, data breach, or hacking incident in Australia, releasing our highly sensitive financial, medical, and other personal information onto the dark web. It’s a scary thought!

Although we have limited control over how third parties handle our personal details, there are some simple things we can all put in place to best protect our data online.

Multi Factor Authentication (MFA)

MFA is a security measure that requires two or more proofs of identity to grant access to an account. For example, when logging into a PayPal or Facebook account, you’ll receive a notification via your selected choice of SMS, email, pin number etc. to confirm that it was you who was accessing it. This means that if someone does gain access to your pin or password, they’ll still need other forms of identity to log in. If it’s an online account, we recommend having this enabled.

Passwords

As tempting as it is to use the same password across all of your accounts, or the classic variations of the word ‘Password’, it makes us more vulnerable to cyber-attacks if they’re cracked. Best practice is to create complex passwords that are different for each platform which you can keep track of by using a trustworthy application such as 1Password or Bitwarden.

Emails

Don’t recognise the sender? Approach with caution. Phishing and spam emails can often look like they’re from a legitimate source, even pretending to be from your friends and family! They can include links that when clicked, can have you reveal passwords and personal information. If there’s a link in an email that you’re not sure about, it’s best not to click.

Updates

Regularly updating your devices and software means they will have the most recent security upgrades to protect you. Hackers look for weaknesses in systems, so setting up auto updates is an easy way to make sure you’re less susceptible to attacks.

Anti-virus software

Protect your computer from malicious software, viruses, and malware with an effective anti-virus solution. This software will run regular scans on your device, preventing and removing any viruses that try to infect your computer. There are plenty of options to choose from, so research what’s available or consult an IT professional for their recommendations.

Stay up to date

Keeping in the loop with the latest news about your subscriptions, providers and other services means that if a security breach happens, you can minimise any potential problems by immediately updating your passwords.

If you do find yourself a victim of a cyber-attack or would like to know more about how to protect your devices and accounts, visit the Australian Cyber Security Centre.