In addition to a will, financial advisers may also recommend creating a trust as part of an estate plan. A trust is a legal arrangement in which one person, the trustee, holds assets for the benefit of another person or persons, the beneficiaries. Trusts can offer several benefits, such as minimizing estate taxes, protecting assets from creditors, and providing for the long-term care of a disabled or incapacitated family member.
Other legal documents that financial advisers may recommend as part of an estate plan in Australia include a power of attorney and an advanced health directive. A power of attorney allows a designated person to make legal and financial decisions on behalf of the client if they become unable to do so themselves. An advanced health directive outlines the client's wishes regarding medical treatment and end-of-life care if they become unable to communicate their wishes.
Overall, estate planning is an essential aspect of financial planning in Australia, and financial advisers can play a critical role in assisting clients with creating a comprehensive estate plan that reflects their wishes and goals. By working with a financial adviser, individuals can ensure that their assets are distributed in accordance with their wishes, their loved ones are protected, and their financial legacy is preserved.