Wills
A Will is a legal document that sets out how your property is to be divided upon your death. This is the most basic element to a well-designed estate plan. A Will is a legal document that sets out how your property is to be divided upon your death. Within the Will itself, there is an executor who is appointed to physically execute your Will according to your wishes. The executor’s responsibilities include:
• Collecting all your assets;
• Paying all of your debts;
• Distribute your estate according to your Will.
Testamentary Trusts
Testamentary trusts are becoming more prominent given the unprecedented scale of inter-generational wealth transfer. A testamentary trust is a very effective structure written inside the will that allows the maximum flexibility with the proceeds of a loved one who has passed away. The two most powerful features of a testamentary trust are:
1. Flexibility on the income and capital of the estate
From a tax efficiency perspective, trustees of testamentary trusts can control the level of income distributed to certain beneficiaries with assistance from their trust financial adviser. This control of distributions could also allow beneficiaries to qualify for certain pensions and other government benefits.
2. Beneficiary protection
Your trusted financial adviser can assist your executors to determine the most effective way of managing the trust on behalf of beneficiaries. Some factors to take into account as part of effective management include risk management, taxation and other issues. If there are young children this also allows protection for them to allow access to capital when they reach a mature age where they can prudently manage their inheritance. Testamentary trusts are not always suitable but your trusted financial adviser can give guidance on the appropriateness of one given your circumstances.
Powers of Attorney (POAs)
Many people do not know, but POAs are just as important as the Will itself. Most will not appoint a POA until it is too late. Unlike the Will which addresses how to distribute your assets when you pass, a POA can look after your financial affairs on your behalf while you are still alive. Situations where a need for a POA is required include:
• When you no longer have the ability to look after your own financial affairs; or
• When you move away for an extended period of time (eg. Overseas work)
Enduring Guardianship (EG)
While a POA looks after your financial affairs when you are not able to, an EG looks after your lifestyle and medical decisions in the same way. You may have been involved in an accident or have suffered a critical illness rendering you in able to make medical decisions yourself. This is when your EG steps in. It is important to remember that a POA and EG work side by side to cater for all unforeseen situations.
Advance Healthcare Directive (AHD)
This is a document which is attached to your EG. An AHD addresses the care which you wish or do not wish to receive in the case of illness. This includes critical matters such as end of life care. An AHD is not to be taken lightly and should reflect your own personal values and wants.
Ease your mind
Working closely with clients and their financial advisers, our team helps establish an initial estate planning strategy and draft realistic and comprehensive legal documentation for the smooth transition of our client’s assets, including real estate, business assets, shares, life insurance and personal effects.
Wills and estate planning are pivotal to financial independence throughout life, and to protect assets and ensure the execution of financial intentions into the future. Make plans for you and your family's future. I can offer:
• stress-free consultations at a time and venue to suit you
• tailored advice to your unique wishes
• experience in mitigating future expenses by drafting long lasting documents
Usually we will take your instructions by email or over the phone, send you draft documents for approval and then meet up in person to witness execution and explain to anyone accepting appointment as Attorney or Guardian their rights and responsibilities. Call or email me when you have discussed with those who you might appoint to carry out your wishes.
Claire A Martin – Lawyer
M: 0402 080 425
E: lawyer@claireamartin.com
