We recommend that our clients ensure that their Estate Planning arrangements are always current and appropriate, and should always be done under the professional advice and services of a solicitor. An essential part of Estate Planning is to ensure that in the event of death, or the death of a loved one, the estate assets are distributed as desired.
Estate Planning needs should be discussed with a solicitor every time there is a major change in one’s life, and at least every five years. When we carry out our Financial Health Check it is an ideal time to review a client’s wishes regarding the transfer of their wealth.
A Will is an important estate planning document. The Will determines who will be in charge of the administration of an estate, and how the assets of an estate are to be distributed after death. For this reason, the regular update of a person’s Will is essential for effective Estate Planning to protect the welfare of their beneficiaries.
A person who dies without a valid Will is said to have died intestate. In this situation, the person's assets are distributed in accordance with a government formula. Under this formula the intentions of the deceased person/s do not prevail unless they are formally stated, that is, within a Will.
Areas of importance when considering or updating a Will include, Beneficiaries, Executors, Specific Bequests and Devices.
There are a number of assets that are not necessarily covered by a Will. Examples include, proceeds from a life insurance policy owned by another person or entity, assets held within a trust or company structure, and assets held within a superannuation fund, while assets owned jointly with another person are pass directly to the survivor.
An Enduring Power of Attorney is designed for people who cannot act for themselves due to mental and/or physical incapacity. It gives someone else the ability to make decisions on their behalf. The types of decisions a Solicitor can make can be specified and the Solicitor must agree to the appointment.
A will-maker who has young children should consider appointing a Guardian to take care of their children should the Will-maker die prior to the children reaching a pre-determined age.
The appointment of a Guardian is usually included in the Will as a safeguard in the event that both parents die before the children are 18 years old.
The appointment of a Guardian also serves to avoid the possibility of disputes between members of the family. The Court has an overriding discretion to appoint or remove a Guardian.
It is the Guardian's responsibility to make the important ‘life decisions’ on behalf of the children. The Guardian must ensure that the children are adequately housed, clothed and educated.
