Do I really need a Will?

TL;DR

Estate planning is crucial to ensure that your assets are distributed according to your wishes, and having a will is the foundation of any estate plan.

Transcript

hello and welcome to this video today we're having a chat with patrick smith who is the principal and senior solicitor at o'brien smith boys here at horsham patrick is a local guy with a young family here and really welcome patrick to provide his expertise on on general estate planning and yeah so thanks patrick thank you for coming really apprecia... Read More

Key Insights

• 🙏 Having a will is crucial to ensure that your assets are distributed according to your wishes and to avoid unwanted individuals receiving a large portion of your estate.
• 🎲 Dying without a will can make the distribution process more complicated and expensive, highlighting the importance of planning in advance.
• 🏣 Using a will kit from a post office may lead to execution issues, making it more advisable to consult a professional solicitor.
• 🍵 Superannuation assets can be handled through binding death nominations, providing control over their distribution and potential tax savings.
• ✋ Testamentary trusts are beneficial for high net worth individuals, offering tax savings and asset protection for future generations.
• 🖐️ Executors play a crucial role in administering a will and should be chosen carefully, considering their financial understanding and ability to carry out the necessary tasks.
• 🏆 Disputes over farming assets and contested wills can arise in farming communities, and the costs of contesting a will may vary depending on the outcome of the trial.

Questions & Answers

Q: Why should people have a will?

Having a will ensures that your assets are distributed to your desired beneficiaries and prevents unwanted individuals from receiving a large portion of your estate. It also provides comfort to your loved ones, knowing that your wishes are being fulfilled.

Q: Can dying without a will make the distribution process more expensive?

Yes, without a will, the process of distributing assets can become more complex, requiring a more complicated court application. Additionally, the cost of putting a will in place is often cheaper than fixing any mistakes that may arise.

Q: What are the key differences between using a will kit and consulting a professional solicitor?

Will kits from post offices often have issues with execution and missing clauses, leading to costly legal problems. Hiring a professional solicitor ensures that your will is properly executed and can save you money in the long run.

Q: What assets are included in someone's estate?

Only assets held in a person's name, such as personal property and investments, are considered part of their estate. Assets held in trusts, companies, or superannuation do not automatically form part of the estate.

Q: How should people handle their superannuation assets in estate planning?

Most superannuation accounts allow for binding death nominations, which specify how the superannuation should be distributed. It is important to consider the tax implications and consult with a solicitor to ensure the most beneficial distribution strategy.

Q: What are the benefits of establishing a testamentary trust?

Testamentary trusts can provide tax savings and asset protection for high net worth individuals. They allow for income distribution to grandchildren and can protect assets from undesired individuals, such as a child's partner.

Q: At what asset level is it appropriate to consider a testamentary trust?

Generally, establishing a testamentary trust becomes more beneficial when the assets exceed a one million dollar threshold. However, this may vary depending on individual circumstances.

Q: What role does an executor play in estate planning?

Executors are responsible for administering the deceased person's will and assets. They need to have a level of financial understanding to carry out the instructions in the will and work closely with a solicitor to ensure everything is done correctly.

Summary & Key Takeaways

• Having a will is important because without one, your assets may be distributed according to government legislation, which may not align with your wishes.

• Dying without a will can make the process of distributing assets more complicated and expensive.

• Will kits from post offices may not be properly executed and can lead to costly legal issues, making it more advisable to consult a professional solicitor.