Welcome to Video 7 in our series about the 6 Building Blocks to Financial Success. In this video, we’re going to talk about leaving a legacy.
Hopefully, now, over a period of time, you’ve got that retirement fund sorted out. You’ve got a lot of money, hopefully, that’s there to be able to be distributed to your family, your loved ones, or any sort of charities that you may support. We want to make sure that, as you’re building up that wealth and as you’re getting other family members coming along in your life, responsibilities in your life, that you’re looking after that and providing a legacy for them.
You might have a will in place, and hopefully, you do have a will in place, that determines where those funds go. If there’s particular assets that you want to send to one family member or one charity versus another, it’s important that that Will documents those things. If you don’t have a Will, it’s not up to you where that money goes. You’re no longer around to be able to determine where that goes. Unfortunately, it usually gets fought out in the courts as to where that money goes. The only people that really win in that instance are the lawyers, so we want to make sure that you have a Will and that you’re reviewing it on a regular basis to make sure that it is current with your existing requirements.
There may be things that come along in life. You might get married. That will change the circumstances. You may have children or a second child, third child, for instance, and again, that changes. You may go through some family breakdown. You may have a blended family, for instance, and so there’s a whole bunch of issues that need to be addressed in your Will. It’s important that you do decide where that goes.
Obviously, there’s things around guardianship for those children, too. Not only is it about providing financially, but if there was something to happen to you and your spouse, and there’s no one around to look after children that are under the age of eighteen, you need to be able to determine who do you want to look after those children. If you decide that a certain, it might be siblings or friends, for instance, that are going to look after those children for you, putting money aside in a trust that allows those guardians to look after your children, and so they’re not a financial burden on them. Also, to set up your children for the future.
The other thing that we want to talk to you about is power of attorneys. There are different types of power of attorneys that you can have. General power of attorney, a medical power of attorney, or an enduring power of attorney. You might decide that you want one family member to look after the finances if you’re unable to make any arrangements or just to do anything in general for you. But you may decide that you have a different family member for your medical power of attorney, in which case they can look after any medical requirements that you have, and you’re unable to make those decisions yourself. Also, you may have an enduring power of attorney who essentially looks after the whole lot. You name one person or a couple of people to be able to look after those big decisions for you if you’re not of mental capacity or unable to make those decisions.
We want to make sure that when you’re looking at your legacy, that you’re doing it as early as possible. These things that might happen in terms of certain accidents or events that happen in life can happen at any age and at any time. If you’ve got a family member, such as a husband or wife, if you’ve got some children, it’s really important that you have at least a Will in place. It’s probably the best fifteen hundred dollars that you’ll spend, and quite often doesn’t even cost you that much. It’s really important that you do that. We certainly want to encourage you, then, to see a proper solicitor to do those things. Make sure that you are reviewing it on a regular basis to ensure that it is current.
That’s it for this video. Again, please like us on Facebook. Please comment and tag friends that you think this is appropriate for. We’ve got the YouTube channel up and running, and we’ve also got the website, as well, where you can see this video and more. In the next video, we’ll be giving you a bit of a wrap-up, and we’ll take you through the next steps. We look forward to seeing you then. Thank you. Bye.