Estate planning knowledge base

In this article, we will address your potential liabilities and other options that will enable you to be involved in the administration of your client’s affairs either on incapacity or death.

A question we often get asked at Inherit is whether advisers should accept nomination by a client to be their Executor, or even attorney under an enduring power of attorney?

The appointment of an Executor is an important decision as the Executor has many responsibilities, obligations and discretions. While a person may specify how their estate is divided, most likely, it will not be specific on how the assets are to be administered before they are distributed to their beneficiaries.

The recent NSW supreme court case of Walter William Nespolon-v- Lindy Van Camp is another case that identifies poor or inadequate estate planning resulting in litigation involving a blended family in conflict.

Inherit’s legal bot collects information about a client’s citizenship and residency. This article briefly discusses the relevance and importance of a client’s citizenship and residency for estate planning purposes.

For many clients, appointing a testamentary Guardian for an infant child is an extremely important decision as it impacts directly on the welfare of their child.

Many families have a beneficiary that could be described as a "vulnerable beneficiary".

When the topic of Estate planning comes up, most advisers consider this within the lawyer's exclusive domain. A mistaken belief is that: estate planning = legal advice.

It is common for clients to financially help their family members during their lifetime, not necessarily on an equal basis. This assistance can be in the form of a loan, a gift to reduce debt, or buying an asset to establish a business. But the client should be asked how this should be dealt with on death, particularly where the gift is substantial and unequal to all family beneficiaries.

The current estate planning paradigm is a blind referral to estate lawyers. It does not work, and most clients never complete their estate plan until it's too late.

Offering estate planning services to your clients help position you and your firm as the client’s lead adviser for all of their wealth. It connects you with the client’s next generation and strengthens the value of your business as part of your own succession planning.

Under current superannuation laws, a member of an SMSF who suffers from incapacity is required to step down as a trustee of the fund or director of a corporate trustee

People often leave their wealth to family members when they reach a certain age, typically an age at which they are responsible for the wealth that passes to them. We call this the “prescribed age”.

We note there is a common misconception that estate planning is only for the benefit of spouses and descendants.

For estate planning purposes, clients may wish to identify specific assets within their fund to be transferred to a specific beneficiary and possibly up to the value of their member account balance.

It is often the case that SMSF members will want to place restrictions on control or access of their superannuation benefits passing to their spouse or partner, upon death.

Life interest trusts are often employed within a person's Will, particularly for blended families, to allow a spouse/partner to benefit from assets owned by a will-maker but not their ownership.

For clients with infant children, the appointment of a Guardian is an important decision that has a bearing on the long-term interests and welfare of children, and there are a number of considerations that advisers should consider.

This question is important in the event that a member client and his/her spouse/partner die as a result of a single event or if a spouse passes away before the member and fails to complete a new death benefit nomination.

People suffer vulnerabilities in many different forms, and when it comes to estate planning, it is essential to consider how to address the unique needs of a vulnerable beneficiary.

Asset ownership types may have an impact on a client's estate planning. When people co-own property together, they do so either as joint tenants or as tenants in common.

The recent New South Wales Supreme court case of Maggie Riman relating to the estate of Rita Riman, handed down on 1 July 2022, is a stark reminder to both clients and advisers of the pitfalls of low-cost online Wills.

The statistics from the Bureau of Statistics are also stark but unmistakable: There are approximately 161,000 deaths in Australia each year ( 441 per day) and seasonally, about 397 deaths occur each day during the summer months of December through to February, the death rate in Australia registered at 31 October last was 17% more than the historical average, and by all accounts, sudden death rates caused primarily by cardiac arrest and coronary artery disease are on the increase.

A testamentary trust is a trust established by the terms of a Will rather than by a trust deed, the rules of intestacy or a court order.

Advisers can use inherit's detailed investigatory process for clients who are yet to make their own Will or for those who have created a Will but are uncertain if their Will or estate plan needs changing.

A financial adviser providing personal advice, is required to act in the best interest of their client ( best interest duty- RG 175)