I’m fast learning that when some retirees say they are SKI-ing, they are not talking about whizzing down a mountain but estate planning. SKI means ‘Spending the Kids Inheritance’.

Talk to these retirees and what they mean is they will do everything they can to give their children opportunities such as a good education. From there, though, it’s up to them. At least these retirees have done some thinking about their future. It’s a sad fact that too many people ignore their estate planning needs.

The first step is a valid will that is regularly reviewed. Then there’s a Power of Attorney where a person grants another person the power to make certain decisions on their behalf such as to buy or sell property.

An Enduring Power of Attorney lets someone act on your behalf if you lose the ability to make decisions for yourself. If you don't have one in place, in the unfortunate event of not having the "capacity" to maintain your affairs, control of your assets may pass to a government body such as The Office of the Protective Commissioner.

If you are still working, carefully choose which beneficiaries receive your superannuation entitlements and in what proportions. If these nominations are not kept up-to-date, you could find your super money is not distributed in the way you preferred.

If you do plan to provide a financial legacy then consider factors like tax. The rules that apply to different assets vary, such as the tax treatment of a family home compared to shares or investment property.

Above all, talk through your intentions with your family. Families who know exactly where they stand will be better placed at a time in the future when the easier you can make things the better.

Paul Clitheroe, ipac founding director, host of Channel 9's "Money" reports and Chief commentator for Money Magazine.

Make an enquiry or see an adviser now, or call us on 1800 626 881.

The information provided in this article by ipac securities limited is for general use only and has not taken into account any individual's personal circumstances or objectives. You should speak to a financial adviser before taking any action.