It is important for all of us to ensure that the assets we have accumulated over a lifetime are left for the benefit of those people or institutions we wish to support, and left in the way that is most beneficial to the recipient. The only way to ensure this is to make a valid Will, having first obtained the appropriate advice.
If you do not have a Will then your assets will be distributed among your next of kin in accordance with a formula set out by legislation, regardless of whether or not this is in their best interests or the result accords with what you would have wanted. If a person dies without any living relatives, then the whole of his or her estate will at the first instance pass to the government.
Matters of consideration when creating a will include:
1) Appointment of Executors
Should I appoint a family member, family friend, professional adviser or trustee company? The answer to this question cannot necessarily be determined without careful consideration of the proposed gifts and the circumstances of the intended beneficiaries. Thought must also be given to the question of remuneration of an Executor and Trustee, especially in circumstances where that person is not a beneficiary.
2) How do I best provide for my family?
This will depend on your family and financial circumstances. It is important that the needs of a spouse or de facto spouse are carefully considered and balanced against the wish to benefit children or subsequent generations. One cannot automatically assume that
a surviving spouse will not remarry and such an occurrence can significantly affect the rights of children to share in an estate.
3) What if I have a child who is in financial difficulties, is someone who is unable to properly manage money or who suffers from a disability?
Much thought needs to be given to balancing the needs of a beneficiary against the risk that a gift will be lost or wasted. The establishment of trusts under a Will can be an effective means of dealing with this issue. Similar issues need to be considered if a child is in a relationship that may be unstable.
4) What are the advantages of establishing a trust within my Will?
Not only can there be important asset protection advantages arising from establishing a trust within the Will, but there can also be significant tax advantages to the beneficiary. A trust established in a Will is often a simple method of providing a significant benefit to a beneficiary, compared with making an absolute gift to that beneficiary.
It is our job to help you find the ideal solutions to these important questions. We invite you to schedule a consultation with us via the contact page.