The most valuable gift for your loved ones
Give your loved ones a valuable gift this Christmas.
While it may be “the season to be jolly”, statistically, the holiday season between Christmas and New Year is one of the deadliest times of the year.
Like shopping for Christmas presents, too many people procrastinate when it comes to estate planning. Whilst nobody wants to think about death, it is a fact of life, and the “I’ll get to it eventually” attitude can prove costly for loved ones.
Christmas is an opportune time to think about your loved ones and in so doing, to ensure that you have up-to-date documentation in place to assist your family in the event of your disability, incapacity or death.
Consider the following:
The government can get your assets! If you die without a will, the law decides how your estate will be distributed. Last year over $8 million passed to the NSW Government from estates where the person died intestate ( ie without a will that effectively disposed of all assets) and with no close relatives. It is important to take control of the legacy you want to leave behind and ensure that YOU, and not the government , decide where your assets go upon your death.
Your assets may end up in the wrong hands! Lauren and Luke were 30 years old and had been living together in Sydney for six months. Both had children from previous relationships. Both wished for their assets to go to their respective children upon their death. Neither Lauren nor Luke had a valid Will. Luke died in a car accident leaving $200,000. The court decided that Lauren was Luke’s de facto spouse and Lauren received the entire $200,000 with Luke’s children receiving nothing. Remember, a will is not effective until it is signed and witnessed in accordance with strict legal requirements.
Don’t leave it until it’s too late! Andrew was 64 years old when he decided to update his will. Shortly afterwards, Andrew began suffering symptoms of dementia. When Andrew finally got around to seeing a lawyer about updating his will, his condition had deteriorated to the point where the lawyer was not satisfied that Andrew possessed the necessary “legal” mental capacity.
Strict legal requirements exist when it comes to determining whether someone has the mental capacity to sign a will. Procrastination can prove costly.
Helpful hints for an effective will.
If you already have a will, it may be time to review it if:
- Your martial circumstances have changed
- A beneficiary or executor has died
- You have additional beneficiaries to include ( eg new born baby )
- You have not appointed an alternative executor in case your executor becomes unable or unwilling to act.
- You have not appointed guardians for any children under 18
- You have travel plans
You should also consider:
- Advising your executors of the location of your important documents
- Making a detailed list of your assets and liabilities
- If you have made an unequal distribution in your will or if you have omitted someone, preparing a separate document proving the reasons for your decision
Is a will sufficient? A will comes into operation only upon death. Other documents allow you to secure your assets, plan for retirement and ensure your family can cope in the event of your disability or incapacity.
These documents include:
- Power of Attorney – this stipulates who can conduct your financial affairs if you become incapacitated
- Power of Enduring Guardianship (NSW), Medical Power of Attorney (VIC), or Advanced Health Directive (QLD) – these stipulate who can make your personal or health decisions if you become incapacitated.
- Binding Financial Agreement – this stipulates how couples direct assets to be dealt with in the event of a relationship breakdown
- Business Succession Deed – this stipulates what happens in the event of death or incapacity of a business partner
- Superannuation Nomination Form – ( either binding or non binding ) this nominates where the super death benefits are to be paid.
Competently prepared documents can help your heirs reap the benefits of your life long toils. Documents should be regularly reviewed to ensure their continued suitability for your requirements.
If you would like to have your personal situation reviewed please contact BAMR Wealth Managers Pty Ltd on (07) 5591 4444.
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