Estate Planning

Wills

It is essential that no matter what age you are, that you have a current and valid will. This allows you to ensure that your wishes are fulfilled after you pass. This will should determine what you have and who should share in it. Even if you do not have a lot of assets, please be aware that life insurance and other forms of compensation could mean that your estate is larger than you realise

It is important that Wills are reviewed on a regular basis. If your Will(s) have not been reviewed in recent times, you should do so as soon as possible to ensure that they are up to date and take full account of your current financial situation. In fact, we recommend that your will be kept with your receipts that make up your tax return so that each year at tax time you review your will to make sure it is still relevant.

Many events have an impact on your estate planning including marriage, having children and how you purchase certain assets. In addition, some assets like superannuation can be managed outside your will and general estate planning.

You should consult your solicitor to make the appropriate arrangements to update your Wills. If you do not have a solicitor, we would be pleased to provide you with assistance in contacting a solicitor.

Power of Attorney (PoA)

A Power of Attorney is a legal document that appoints a person or persons to make financial, legal, and/or medical decisions on their behalf. An attorney’s signature on a document has the same legal force as the person’s own.

By holding an Enduring Power of Attorney, the broadest and most common form of attorney, you can ensure that should you become incapacitated or unable to manage your affairs for some reason, your personal affairs can still be managed to your benefit by someone you trust.

Another type of attorney is a General Power of Attorney. A General Power of Attorney is given to a person for a specified act or for a specified time. For instance, this type of attorney may be appropriate in the circumstances of when you travel overseas. You may give someone the power to make financial transactions such as pay bills on your behalf while you are overseas. This power would cease on your return home.

Executors

The role of the executor is to call in the assets, pay off debts and distribute the estate assets to the beneficiaries. An executor must be reliable, honest and be capable of dealing with professional advisers (ie. accountants, solicitors, financial planners etc).

Testamentary Trusts

Briefly, a Testamentary Trust is a trust created under a person’s Will and is activated upon the death of that person. Instead of the assets passing directly from one person to another, the assets are passed on to the estate, and then become assets of the Testamentary Trust. This is of special value for an estate with young children. When assets become part of a trust and then income is distributed, the children who may be minors are able to benefit from adult marginal tax rates rather than the higher childrens’ rates.

For all estate planning issues, we recommend that you consult a solicitor for more detailed and specific advice.

For more information on Financial Planning, go to the Financial Spectrum Home Page 

Financial Spectrum is a Principal Member
of the Financial Planning Association
of Australia (FPA)