Like it or not, we all die. So it makes absolute sense to have legal documentation that ensures your wealth is distributed as you wish upon your death. Failing to do so can lead to families breaking apart and tens of thousands of dollars disappearing in legal challenges.

Here’s an example to show how the lack of estate planning can affect somebody who dies with, seemingly, even the most modest of assets. Dean had been living with his girlfriend for four years when he died at 28. Given the fact that he only had a relatively smallamount of superannuation and the value of his car, he’d never felt it necessary to seek estate planning advice. Unfortunately, when it was revealed that his three superannuation policies all came with automatic life insurance with a combined value of $380,000, Dean’s wishes were unclear and his parents and girlfriend ended up in court.

Often, they may not be mature enough and end up squandering their inheritance. Problems may also arise when a child inherits assets and finds themself in a relationship that ends suddenly leaving half the assets to their ex-spouse through a family law settlement.

To die intestate means the Government divides your assets according to a formula that stipulates which family members get what percentage of your assets. It’s time consuming, can be expensive and very frustrating for family members.

A professionally structured will minimises the risk of any successful challenge by would-be beneficiaries. It can also help reduce the tax paid by beneficiaries once they have inherited the assets.

Insurances that cover anything other than human life are termed ‘General’ insurances. These are the ones designed for residential and commercial properties, contents, motor vehicles and so on. You can even insure against liabilities through:

Public Liability protects you and your business against the financial risk of being found liable for the death or injury of a third party, the loss or damage of property or economic loss resulting from your negligence.

Professional Indemnity guards you from potential legal action arising from losses incurred as a result of your professional advice. It provides cover should your client suffer a loss attributed to your negligence whether it be material, financial or physical.

Product Liability may be advisable if you sell, supply or deliver goods, even in the form of repair or service, as it can cover you against claims of goods causing injury, death or damage.

Management Liability can be worthwhile if you are involved in running an organisation. It includes policies such as Directors and Officers Cover, Employment Practices Cover, Crime Cover and so on.

Assets & Revenue Insurance covers a wide range of insurances including:

• Building and Contents to cover your building, contents and stock against fire and other perils
• Burglary is particularly important for businesses where premises are not always attended
• Business Interruption or Loss of Profits ensures your ongoing expenses are met by providing cash flow if your business is interrupted through fire or other insured perils
• Deterioration of Stock covers the deterioration of refrigerated stock due to refrigeration malfunction
• Electronic Equipment protects such items from theft, destruction or damage
• Employee Dishonesty covers you for losses caused through employee theft or embezzlement
• Farm Insurance covers crops, livestock, buildings and machinery
• Goods in Transit covers the goods you sell or buy
• Property In Transit covers the theft of damage of items you use for your business such as tools or equipment
• Machinery Breakdown protects you from mechanical and electrical breakdowns at worksites
• Travel Insurance is used to cover those insured while traveling locally or abroad.

You can find an insurance policy for just about anything, especially high-risk areas. These can include Industrial Special Risks, Marine Insurance, Trucking Fleets and Sports Cover. Finding the right one starts with finding your right financial advisor.

As you no doubt know, it is compulsory that all business vehicles are insured for third party injury liability. Basically, there are four types of options:

1. Compulsory Third Party (injury) covers you for claims made against you for personal injuries and legal costs arising from the use of your car. It is a mandatory insurance.
2. Third Party Property Damage covers your liability for damage to another person or to the property of others and your legal costs.
3. Third Party, Fire and Theft covers you for all of the above including fire and theft. It also insures you against damage caused if your car was stolen.
4. Comprehensive also covers you for damage caused to your own car by you in an accident.