Estate Planning
Why do I need to update my Will?
If you already have a Will, it is a good idea to review it every four years. Due to continuous changes in taxation, superannuation, social security law and your personal circumstances, such as:
- birth or death of children, grandchildren or other close relatives, or other changes in your family circumstances
- death of your previously appointed executor
- significant changes to the value of your assets
- sales and purchases of assets
- substantial changes to the manner in which you own assets, including the formation of a family trust or the establishment of a self-managed superannuation fund etc
- if you enter into a new business or change your existing business structure
- changes in your residency status
- changes to intended beneficiaries of your estate
- retirement from full-time employment
The following points must also be considered when maintaining an up to date Will.
Forgiving debts
If you don’t “forgive” any debts owed to you, or by you to any of your trading entities (companies, trusts, partnerships) they’ll form part of your estate and can cause assets to be sold/transferred unnecessarily to pay out a “book entry”. This can result in some unexpected capital gains.
Do you have a business?
Who will succeed you as the business owner(s)? Who you appoint as director, or leave shares of a trustee company to, will affect this outcome.
Can your business continue to survive without you, and if not
- Would your family be able to sell it, or its assets for a fair value?
- Do you have business partners who can buy out your share?
- Do you have appropriate buy sell agreements, or key man insurances to deal with these issues?
- If you don’t consider these issues in your Will, your spouse may end up in business with your existing business partners….is this what you want?
Do you have children?
If you have children under 18, you will need to nominate a guardian. Otherwise the executor becomes the automatic guardian.
If you have non dependant children, your superannuation assets may be taxed at a higher rate. Remember that when you leave the Public Trustee (government) to distribute your assets; they do not take tax implications into account. This may, in effect reduce the overall value of assets distributed to your beneficiaries. Strategies can be put in place to mitigate this when a Will is created.
Superannuation and death benefits
Your superannuation assets can fall outside the scope of a Will. The distribution of superannuation fund assets; as well as any insurance policies within them is dealt with by the trustee of your fund. To ensure assets within your superfund are distributed according to your wishes, a binding or non-binding death nomination is required. Your personal circumstances will determine what type of nomination you make to your super fund.
Why do I need an Enduring power of attorney?
Should you lose the capacity to make financial and property decisions for yourself; an Enduring Power of Attorney is a legal agreement that enables you to appoint a trusted person - or people - to make these decisions on your behalf.
Why do I need an Advance Health Directive?
An Advance Health Directive enables you to make decisions about the medical treatment you want or not want to receive if you were incapable of communicating your wishes at a later date.
Why do I need an Enduring Power of Guardianship?
This document authorises the person of your choice to make important personal, lifestyle and treatment decisions on your behalf if you became incapable of making such decisions for yourself.
After considering the above issues, please select from one of the following options
Should you require more information please refer to the website of the Office of the Public Advocate
A link to their website is provided below: -
