Estate Planning vs Estate Administration – What You Need to Know

October 31, 2023    Estate Planning Lawyers Perth
Estate Planning vs Estate Administration – What You Need to Know

Losing a loved one is difficult. Planning and administering the deceased estate is in demand and draining simultaneously. Estate planning is the management of the legal and financial assets of an individual, which needs to be distributed. This needs to be done in an orderly and tax-effective manner. A well-constructed plan properly integrating legal and financial matters.

Estate administration is dealing with third parties and beneficiaries to make sure that the estate is administered as per the wishes of the deceased. This website blog covers everything you need to know about estate planning vs. estate administration.

Understanding Estate Planning

The objective of estate planning is to plan for one’s incapacity and eventual death. You need to be the one to make the final choice and decision. This must match the healthcare decisions and know how the assets will be distributed after your death.

It is important to contact a lawyer who can help you draft the needed documents. The planning Lawyer can help you settle the laws of wills, power of Estate administration lawyer in Perth, living wills, and advance directives.

Estate planning is needed for the children. It is important to prepare for the unimaginable when you plan the estate while you have small children. This ensures they are taken care of in the way you like. You need to mention their guardians as the beneficiaries of the will. This is applicable before the kid turns 18. The courts decide who will raise the children if you have not mentioned any guardians in the will.

Everybody is familiar with family disputes. With the presence of a proper will, there will be no disputes between family members. You may think that the other one has got more money than they deserve. The will makes sure that the assets are distributed properly and equally.

Key Elements of Estate Planning

The key elements of estate planning are marked below:

1. Will

This is the most important part of the estate plan. It states how the assets should be distributed.

2. Power of Attorney

We operate in situations where you are suffering from temporary legal issues. Moreover, We are here to make decisions for ourselves.

3. Superannuation

It is not a part of the estate. There are several occasions where the superannuation death benefit is paid to the estate.

4. Financial Goals and Insurance

Consider taking into account financial affairs like insurance. This must be remembered to make the most out of the assets and estates.

What happens after someone passes away?

You need to notice that it is a heartfelt situation when your beloved passes. Making an estate is complicated, and you need lawyers to care for it.

The process is considered costly even when the estate is small and instructions are simple.

You can know about the deceased’s financial assets when you know about their banks and other institutions where they used to save their money and other assets.

It is important to open a separate bank account for the estate. This reduces the chance of confusion with personal bank accounts.

When opening a bank account, it is easy to know the amount of deceased financial assets. This helps to avoid disagreements with the other beneficiaries. The bank considers these accounts “executorship accounts” when the lawyers present them.

Role of Executors and Administrators in Estate Administration

The executor is the person who carries the wishes of the deceased. Any lawyers and specialist trustee companies are considered to be executors. The roles and responsibilities of an estate administrator and executor come up in the form of –

  1. Collecting the assets and valuing them.
  2. Make the tax implications.
  3. Make the most out of the funerals.
  4. Apply for the grant of probate.
  5. Know about the owed debts and pay them with the money.
  6. Offer life insurance claims.
  7. Distribute the estate will.

It is important to hire a lawyer to assist them in doing some of the above-mentioned tasks.

Selling the estate is the probate process. The assets of the deceased must be distributed properly. The variables and circumstances usually delay the Estate Administration process.

Key Differences Between Estate Planning and Estate Administration

1. Estate planning

  • It creates a detailed plan to distribute the assets after the death. This involves drafting the will, getting trust, and offering updates to the beneficiaries.
  • It allows you to get control of how the assets will be distributed and how they will be managed after the death. You must reduce the taxes and make sure that the wishes of the deceased are fulfilled.
  • This is considered to be a process that must be carried out by an individual who is alive and in a sound mind. Consider careful noticing of factors like family dynamics and tax implications.

2. Estate Administration

  • This refers to using the estate plan after the individual has passed.
  • The court oversees the asset distribution.
  • This is the following: the actual implementation of the estate plan.

When to consult an estate administration lawyer in Perth?

An Estate administration lawyer in Perth works with you and the tax professionals. Some of the situations when you need the help of an estate planning lawyer are marked below:

  • We can help you create a customized plan per your needs and preferences.
  • We prepare the will and other needed documents.
  • We come up with modern healthcare directives and plans for long-term care.
  • The lawyer helps to identify the beneficiaries.
  • Helps you get the best trust as per your needs and preferences.
  • Work with the financial advisor to reduce tax burdens.

There is a team of experienced and skilled professionals who can guide and advise you to make the most out of your will.

Conclusion

You are now well accustomed to understanding estate planning vs estate administration. It is important to manage the assets and make sure that there is a smooth transfer of wealth in Australia. Estate planning helps to create a detailed plan for distributing the assets. Estate administration is the use of the plan after the individual has expired. It is important to know the purpose of each procedure, as you need to make sure that the last and final wishes of the deceased are fulfilled.

REQUEST A QUOTE NOW! Complete the form below for a fast response


Copyright © Estate Planning Lawyers Perth.
All Rights Reserved
Enquire Now
Call Us Now