National Wills Week, Monday 12 to Thursday 16 September, is a good reminder to re-look at the legacy you are building, far more than just focusing on a will.

Although a will is essential, holistic estate planning ensures the next generation has financial freedom. This may seem obvious and straightforward, but there are many considerations and legalities that can make this process hard to navigate on your own.

Hilary Dudley, Managing Director of Citadel Fiduciary, explained that estate planning is part of an investment strategy. It assists to transfer assets, deals with the settlement of any outstanding debts and taxes, and ensures that your wishes are carried out. Here are five insights to consider:

One size does not fit all

“Estate planning is never a one-size-fits-all formula since each family’s situation differs,” Dudley explained. She said an estate plan should be tailored to one’s own specific needs. “The complexity and location of assets will differ, and both family size and where family members live should be taken into consideration. Planning for a smaller family may differ vastly from that of a larger family with more beneficiaries.”

Family affected

A will forms the foundation of a transfer of wealth to the next generation, continuing one’s legacy even after one is gone. Legalities surrounding wills may be complex if they are not correctly drafted and executed.

“Even with a valid will the process of winding up a deceased estate takes at least a year,” Dudley pointed out, “provided there are no complications such as disputes, tax audits or businesses that need to be sold. Queries around the validity or content of a will delay the process, and not having a will at all can also cause delays and emotional stress.”

Executorship is essential

“Naming an appropriate executor in your will to administer your estate upon your death is essential,” explained Dudley. “An executor can either be an individual or a company represented by an individual.”

Not having a will can delay the commencement of the estate administration process because this cannot start without the appointment of an executor. Where there is no will nominating an executor, the appointment process requires the consent of family members.

If you nominate an individual as your executor, consider nominating an alternative person who can step in if your initial nominated executor dies, loses their mental capacity, emigrates or is otherwise unable to accept the nomination.

Transfer wealth over generations

Estate planning is key to transfer wealth from one generation to the next effectively. About 70% of intergenerational wealth transfers fail, according to a 20-year study in the USA conducted by The Williams Group, which found that seven in 10 wealthy families were losing their fortune by the second generation, while nine of 10 lost it by the third. These odds can be beaten though with strong estate planning that involved the next generation.

Talk about succession

Sharing your family’s long-term financial mission and the strategy to achieve it gives your heirs the bigger picture and helps them to understand what their role will be in achieving this for generations to follow. It also empowers them to take on some responsibility while you are still around.