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Wills |
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It is desirable to have a Will. If you do not have a Will then the Administration Act 1969 applies and this can have consequences that a client would not intend. Making a Will gives certainty to your wishes. You must consider who to have as trustee or executor (or more than one person) and who the beneficiaries are to be and how your estate is to be divided. |
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Estate Planning |
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It is essential that you give consideration to the assets that you have, the extent to which there is a debt to a financial institution, and the most desirable form of ownership. People in a second marriage or second relationship must give consideration to how assets are owned. If assets are owned jointly then on the death of one partner/spouse the surviving partner/spouse will inherit the whole asset. This can cause difficulties for children of a former relationship as those children can be disinherited. The right mix of ownership and estate planning provisions are therefore necessary to achieve the right balance and the right result. |
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Family Trusts |
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Traditional reasons for establishing a family trust are to avoid estate duty and to give protection against creditors. Currently there is no estate duty legislation but that could come back in the future. Protection against creditors is very important for people in business.
The third main reason for establishing a family trust is to be able to be eligible for rest home care subsidy should you need rest home care in the future. If a family trust is established early enough all your assets can be transferred to the trust and usually you would then qualify for the rest home care subsidy at the appropriate time (so long as all of the documentation had been completed and gifting finished in time).
Family Trusts are about asset protection. Assets are transferred at current value. Usually a gifting regime then commences and can take many years depending on the value of the asset/s. It is usually better to start the process sooner rather than later. |
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