DO YOU HAVE YOUR ESTATE PLANNING BASES COVERED? DO YOU KNOW IF YOUR SUITE OF ESTATE PLANNING DOCUMENTS ARE IN PLACE AND UP TO DATE? It is common for clients to prepare Wills early in their careers or early in a relationship, and consider that they are a ‘set and forget’ document, not realising your estate planning needs can change as your life, family and career circumstances change. Besides this misconception, many people are also not aware that their estate planning documents may be incomplete, due to a number of potential reasons, such as: • Marriage or divorce may partially or wholly revoked your existing documents; • You hold assets via different structures, meaning a Will may not be sufficient to give effect to your wishes on your death; • Superannuation binding death benefit nominations may have lapsed or may be ineffective; or • Being in a new ‘blended’ family may mean your estate plan is subject to different risks from challenges to your Estate. DID YOU KNOW? If you hold assets other than in your personal name, they are not estate assets and cannot be gifted via your Will. This includes assets held in joint names as joint tenants, which on your death simply revert to the survivor. Many spouses hold their homes and bank accounts as joint tenants. For blended families in particular this may result in assets being transferred other than in accordance with your wishes. Assets held via family discretionary trusts or unit trusts are not governed by your Will, and are instead governed by the Trust Deed. It is important that the relevant Trust Deed is reviewed to see who will have control of this structure on your death and what can be done to complement your estate plan. Superannuation is an area where Australians hold an increasing amount of their wealth. The only circumstance in which your superannuation death benefits will be paid in accordance with the terms of your Will is where the funds are paid to your Estate. This is only one of a number of potential scenarios. Your superannuation death benefits can be paid to: We’ve all been there, a visit to hospital to see a loved one or a health scare of our own, prompts us to start thinking of our own mortality and can highlight the need to make sure your personal legacy to your family is not one of debt, chaos and frustration. 24 Pindara Magazine 2016
Pindara Private Hospital Magazine - Issue Nine
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