Wills - Are You Covered?

Did you know: -

• If you do not have a Will your estate is distributed according to the legislated intestacy rules to your spouse, children and/or next of kin in differing proportions. A properly drawn Will ensures your wishes and intentions are implemented.

• Marriage voids all prior Wills. A Will can be made "in contemplation of marriage" or should be made as soon as practicable after marriage.

• You should review your assets and identify jointly owned property - which is outside the ambit of your Will. Property, e.g. shares, debenture, bank accounts, land and buildings, etc., owned as joint tenants, pass to the surviving joint tenant automatically regardless of what you direct in your Will.

• In certain circumstances, e.g. remarriage, in order to protect your assets for the benefit of your children it may be advisable to acquire and hold property as tenants in common (either in equal or unequal shares). One option available under a Will is a life interest be created to ensure your spouse has security of tenure.

• Property held in a Family Discretionary Trust or other Trust Entity, cannot be disposed of by your Will. Control of the Trust must be addressed and may be able to be done via your Will. You should check to see who is the "Appointor" or "Principal" of the Trust. This person usually controls the appointment and/or removal of the trustee. Unless care is exercised to ensure "control" of the Trust is maintained, unforeseen and unwanted consequences may occur.

• Testamentary Trusts (i.e. a Discretionary Trust within your Will) can provide flexibility in the administration of your estate and can provide protection where prospective beneficiaries are or may be bankrupt, divorced, spendthrifts or suffer legal, physical or mental handicaps. Tax advantages may be available to beneficiaries, especially minors.

• Care must be taken with respect to Insurance policies and Superannuation Policies firstly to ensure that they reach your estate (if this is your intention) and not a nominated beneficiary. Special care is needed where Superannuation proceeds may enter the hands of infant beneficiaries. Attention is also required where Superannuation benefits exceed the pension Reasonable Benefit Limits and to consider planning to ensure tax-free funds pass to the beneficiaries where possible.

There are specific issues to keep in mind when reviewing or making a Will:-

• Have I appraised my executors/trustees, the guardians of my infant children of my wishes regarding my estate and the upbringing of my children etc.?

• What assets are jointly owned?

• What capital gains tax implications are there with respect to my estate and the bequests contemplated in my Will?

• What steps should I take to ensure Trust Assets are protected and ultimately benefit my family?

• What questions should I ask regarding insurance and Superannuation assets to ensure they benefit my family?

• Should I own property as a joint tenant or as a tenant in common?

Are any of the matters raised here of interest to you? If so please contact us to discuss your options

DISCLAIMER
Please note that this information should not be relied upon for decision making or providing advice without seeking expert opinion. Glenister & Co exclude all liability relating to relying on this information.