Not only did last week’s blog create some discussion but our estate planning seminar was booked out within a day!

The one certainty in life is that one day we will pass way.  The issue that many fail to address is to plan for that eventuality.

In my opinion this is the most important document in almost everyone’s life (yet sadly only half of Australians have one).

So how good is your estate planning?

To assist you, please consider the following 10 matters that too many people fail to address.  They are not in any order and the list is certainly not exhaustive as there are many other reasons as to why a lack of proper estate planning can lead to a disaster:-

1. I’ll start with the most basic and common matter. Jointly owned assets (such as a family home) automatically go to the survivor. It doesn’t matter what is stated in the will; a will has no power to deal with jointly owned assets as they never become part of the estate.
2. One’s superannuation is held in trust. In the absence of a binding death nomination, the responsibility of deciding who the super will go to is the responsibility of the trustees – and for a public fund, that is some faceless group of people who you do not know. With 1 in 2 marriages ending in divorce, there can be two or more parties that can claim an entitlement – it can only get ugly, costly and lengthy exercise.
3. It is alarming how many times a binding death nomination is found to be ineffective.
4. One good way of identifying whether you have a good estate planning lawyer or not is that they will have asked to see a copy of your self managed super fund deed –if they haven’t, terminate the arrangement and seek another lawyer. By engaging an experienced lawyer, matters such as (but not limited to) will be addressed – voting rights, reversionary pensions and payment of death benefits.
5. The danger of wills written long ago is that the nominated executor or executrix may no longer be alive, mentally capable or even one’s best friend. Do you really want them to still administer and distribute your life’s wealth? What if your friend from school is now a drug addict?
6. Unless there is an unpaid entitlement, the beneficiary of a discretionary (family) trust has no right to the assets of a trust.
7. A lack of planning as to who will be a replacement trustee (either as an individual or director of a trustee company) of a discretionary trust. There is also the more critical issue of who will be the replacement appointor of a discretionary trust.
8. If one is a member (and therefore trustee) of a self managed super fund, who will become the replacement trustee?
9. Who will look after the kids if both parents pass away? Too many wills don’t address this; even less fail to address the associated funding.
10. Not making or revising a will whilst one is still mentally capable and there are no doubts as to there being any disqualifying acts such as dementia and undue influence.

The above is not to be construed in any order of importance as any one of these could be the most important to you.  Nor is this list exhaustive – there are other many matters that need to be addressed depending on one’s own circumstances.

So will your wishes be carried out as you intend?

As next month’s estate planning seminar has been booked out, we will be re-running the seminar again later in the year.  Please ask Alex Stewart whether you wish to be added to the wait list.

At MRS, we will spend today planning for your success tomorrow.