Estate planning is a grim but essential task that needs to be undertaken before you draw up your will. Retireinvest has prepared the following checklist as a guide to the things you need to consider.

What assets do I own? Many people don't realise there are some assets which cannot be included in the estate as they fall outside the jurisdiction of the will.

These include:

Joint assets
When an asset is owned jointly (as is often the case with a husband and wife), the assets will automatically become the property of the survivor.

Life insurance
When a person insures their own life and nominates specific beneficiaries, on the person's death the benefits will be paid directly to the beneficiaries listed in the insurance policy.

Superannuation
A person's contributions to a superannuation fund are held by the trustee of the fund. In the event of the person's death, the contributions must be distributed according to the terms of the fund's trust deed rather than the will.

Family trusts
People who set up a family trust commonly consider that the property of the trust is their own and should be distributed according to their will. This is not the case. The trustees own the property and will hold it according to the terms of the trust deed.

What do I want to go to whom? As the value of your assets is always changing, bequests should be in terms of a percentage of the estate rather than dollars. A small number of specific assets may be itemised to cover sentimental gifts.

Are there people who may be dissatisfied with the division of your estate? If so, it may be wise to include a brief explanation as to why recipients are to receive different amounts. This will reduce the potential for any legal dispute.

Do I want any beneficiary to receive an income instead of a lump sum? If so, a trust could be established and the money invested by the trustees.

Other issues to consider include capital gains tax. What happens if a beneficiary dies before I do? Who should be executor? Is it best to have more than one?