Having a legally valid will can go a long way to avoiding disputes over division…
Why you need a Will
Small business relief on loans...
Your No 1 Financial Focus, Decade By Decade...
Everyone has a different life journey they’re on. But getting on top of key financial goals as you follow your own path could see you enjoying a more comfortable lifestyle and being ready for the next chapter to begin. Read our guide to getting all your money matters sorted out, one decade at a time…
Role Reversal
...when your parents are relying on you!
As your parents get older, your whole family will be facing lots of changes. Supporting them during this time can be challenging, with lots of choices to be made. Get some tips to help you prepare for this role-reversal without it becoming a burden or a cause of family conflict…
So you're starting a family...
The True Value of Advice
Does investing in a financial planner really pay off? According to the latest research from Sunsuper you could be thousands of dollars better off when you make choices based on professional financial advice. Plus you’ll take more family holidays, have greater peace of mind and more confidence in your financial decisions...
What happens to your super when you die?
5 issues to consider before tying the knot...
Before your big day, much of the financial talk may have been around budgeting for your wedding and planning your honeymoon. But while not nearly as exciting, there’s another vital part of your new partnership that should be considered: your future finances.
Finances can be one of the biggest sources of stress and tension in a marriage. However, open communication and careful planning now can help you avoid many problems down the road.
Here are five important areas to examine before you walk down the aisle:
Mistakes To Mastery (Free eBook)
Life doesn’t revolve around money. Lots of other things - like family, friends, and health - can be much more important to you than your bank balance. But some personal goals are hard to achieve if you don’t have much money. That’s why the FPA have put together this handy guide to getting to grips with the do’s and don’ts of your finances...
Retirement: Seniors are doing it for themselves
Newcastle-based lawyer Lyn Lucas has been practicing family law for 25 years. She is also 76. Lucas studied law as a mature age student, and seven years ago created an online legal practice, Online Divorce Lawyer. This came about as she was looking to lessen the stress of practising law full time...
Retirement: Life after work
Insurance: Income Protection - Stay Ready
Updating Your Family Trust
Grab yourself a cup of coffee for this particular article, because you're going to need one. This note focuses on the importance of staying on top your family trust deeds. It's a little lengthy but please stay with me on this if you can - and if not, just call me and I'll point you in the right direction...
STARTING A NEW BUSINESS?
ESTATE PLANNING: A cautionary tale...
Abandon gift in Will to keep pension?
The Financial Planner carefully structures Mary’s affairs.
Mary receives a $1 pension and Concession Card. But then, Mary’s mother dies.
Mum’s Will leaves everything to Mary. The inheritance costs Mary her $1 pension and Concession Card. Mary has money from her superannuation. She doesn’t want the inheritance. Mary desperately renounces the gifts under the Will. Mary’s children get the inheritance instead.
Does Mary keep her Centrelink Benefits?
Sadly, no. Centrelink deems monies abandoned or given away still yours for the next five years.
The two exceptions:
- $10,000 rule – gifts under $10,000 per year are not means tested
- $30,000 rule – gifts under $30,000 over a five-year period are within the gifting free area. However, a gift cannot exceed $10,000 in any year.
Gifts above $10,000 are ‘deprived assets’. ‘Deprived assets’ are given away but still deemed yours for the next five years. Sure, Mary can abandon the gifts under her Mum’s Will. However, Centrelink deems the gifts still hers for the next five years.
So what can you do?
Let’s pretend Mary’s mother is still alive. There are many strategies available to them. For example, an Accountant or Financial Planner can go on a legal website (we recommend Legal Consolidated - www.legalconsolidated.com.au) and easily build a 3-Generation Testamentary Trust Will.
The 3-Generation Testamentary Trust Will names Mary and her children as beneficiaries. The 3-Generation Testamentary Trust is flexible. Each beneficiary can receive a portion or none of the estate.
Mary then successfully retains her $1 pension and all-important Concession Card.
Companies and Family Trusts would require a slightly different approach.
Rick Maggi
Do You Have an Estate Directory?
Ok, so you've planned for retirement, you have insurances in place, your Wills are up to date, and you've appointed Enduring Powers of Attorney. You couldn't be more organised - well done!
But do your loved ones know where your Will is located? How about your insurance and superannuation documents? Do they know who your Lawyer, Financial Advisor and Accountant's are? How about that key to the safe or special filing cabinet?
You can see where I'm going with this.
An 'Estate Directory' is a simple but extremely useful document to have in times of crisis. Basically, it's a list of important contacts and the location of documents that you can give to your next of kin, leave in an obvious place, or lodge with us, your Financial Advisor.
Don't let your well considered plans unravel at the worst possible time. If you're a client of Westmount, ask for an Estate Directory today (it's free).
Rick Maggi
Curse of the homemade will
“On numerous occasions when dealing with so-called homemade Wills, I have observed they are a curse. Homemade Wills which utilise what is sometimes known as a ‘Will kit’ are not much better. This case proves the point….”
Master Sanderson, Rogers v Rogers Young [2016] WASC 208
Kathleen Rogers loved her daughter, Alexandra. Mum’s Will left everything to her. Mum died of cancer when Alexandra was not yet 18. The Estate was intended to be held on trust until Alexandra was 25. Unfortunately, mum’s newsagency Will kit did not agree. The Will was ambiguous as to what ’25 years of age’ meant.
The penny dreadful Will kit cost the daughter $200,000: $100,000 to attack a Will and $100,000 to defend. It’s paid by the estate, so 18 year old Alexandra lost out here. Mum could have gone to our law firm’s website and built a professional Will for a mere few hundred dollars.