A will is a legal document which sets out how you want your assets to be distributed on your death. It gives you the opportunity to provide for your family and friends after you die.
There are many benefits of having a smart will rather than having what we call simple will.
Simplistic wills do not avoid complications – in fact, they do the opposite, by preventing flexibility and leaving gaping holes for tax leakage. They may leave your estate exposed to creditors and predators.
Even if all you own is your house/apartment, you should still upgrade from a so-called ‘simple’ will to a smarter will that properly protect your loved ones, assets and reduces unnecessary tax. In fact, if it is worthwhile considering a smarter will even if the asset pool is small and the intended beneficiaries circumstance are such they will not lose Centrelink entitlements.
There is really no such thing as a ‘simple Will’ and each fact situation must be carefully considered.
Smarter will
It is strongly recommended to upgrade from a so-called ‘simple’ will to a more sophisticated will that will give you the following benefits;
- properly protects your assets and reduces unnecessary tax.
- Prevents creditors and predators meddling with your assets
- Use income streaming to take advantage of preferential tax rates
- foreign beneficiaries – capital gains tax (CGT) may not be triggered
- asset protection
- possible protection from Family Law claims
- power of adjustment
- preserving your beneficiaries’ centrelink entitlements
- providing your beneficiaries’ more options
- power of adjustment
Upgrading to a smarter will can add tens of thousands of dollars to the value of your estate.
You can down load a free copy of “Smarter Wills Guide and Benefits“
What if there is no will?
When there is no will or no valid will, you are said to die “intestate”. The Administration and Probate Act 1958 (Vic) sets out a formula (rules of intestacy) for how your estate will be distributed and to whom.
Disadvantages of not having a will
- You have no control over the distribution of your estate.
- The rules of intestacy may not accord with your wishes.
- Your spouse may be forced to sell the family home in order to pay a share to your children.
- You do not control who is chosen as guardian for your children.
- Your children or grandchildren may not receive the financial protection you desire.
- Partners, stepchildren, friends and favourite charities may miss out.
- Incapacitated members of your family and their own assets may be put at risk.
- Your estate may be administered by someone you would not appoint.
- Your estate may not be handled in the most tax effective manner.
Why should I revise my will?
A will should reflect your current domestic and financial situations. As circumstances in life change, so should your will. Revise your will at least every five years or when a significant event such as marriage, the birth of a child, or the death of a family member takes place.
Even if you haven’t changed your will, certain events such as marriage and divorce may still affect it. Generally speaking:
- a will made prior to a marriage is not valid following the marriage
- separation (but not divorce) from a spouse does not affect the will
- any gifts to your spouse or his/her appointment as executor are automatically revoked on divorce, unless your will indicates that you did not want dispositions to your spouse revoked on divorce.
It may also be necessary to appoint a guardian for your children after their birth or to review your appointed executor.
What a lawyer can do for you
A lawyer can give you an unbiased and objective opinion on how you should go about disposing of your estate and the procedure you need to follow. Your lawyer can:
- ensure compliance with legal requirements so your will is properly drawn up, correctly signed and witnessed
- ensure beneficiaries are provided for, for example, through the creation of a trust
- ensure your wishes are clearly expressed in the will and the will suits your situation and circumstances
- carry out a complete review of your assets , including assets that will not be affected by your will (such as jointly owned assets, discretionary trusts set up during your life-time, superannuation, private companies and guardianships) and advise you how to deal with them
- advise on testamentary trusts
- advise on whether your current will should be changed to reflect new circumstances
- advise whether your will could be contested and how you can prevent or reduce the chances of this occurring
- advise on whether you can make a claim from an estate and the likelihood of success;
- pursue a claim on your behalf
- advise on the role of an administrator
- represent your interests in relation to any court matter
- advise executors on their obligations under a will and pursuant to the law;
- advise on what happens where there is no executor
- provide advice where there appears to be an ambiguity in a will
- provide safe custody of your will free of charge
- provide ancillary services relating to advice on and preparation of powers of attorney.
You can down load a free copy of “Smarter Wills Guide and Benefits“