What is Modern Estate Planning?

Modern Estate Planning is planning for the preservation of your wealth during your lifetime as well as planning for the succession of that wealth to your intended beneficiaries in the most advantageous manner upon your death.

Modern Estate Planning is not just about making a Will, Power of Attorney and Appointment of Enduring Guardian. It also covers Asset Structuring, Insurance Planning, Superannuation Planning, Family Planning, Testamentary Trusts and Business Succession Planning (where applicable). Taxation and asset protection measures are also important considerations when planning for your future and the succession of your wealth.

There are many events and laws that can have a significant impact on the fulfillment of your intentions with respect to your wealth and lifestyle all of which should be considered by everyone as part of their Modern Estate Planning.

Modern Estate Planning Articles

"I have a will, isn't that enough?": An introduction to Modern Estate Planning.

Planning for the Forseeable: Why Appoint an Attorney & Guardian?

Wills creating Asset Protection Trusts: Why your beneficiaries' future circumstances are just as important as yours.

Personal Insurances Planning: Don't risk more than you can afford to lose.

Why Asset Protection is Fundamental to Every Modern Estate Plan.

How to Prevent the Family Court making Orders deailing with your Property.

Pre-Empting Contested Wills Claims.

Why is Modern Estate Planning important?

Modern Estate Planning will ensure your loved ones will not suffer a financial strain or worries in the event of your untimely death, injury or illness. You can plan to overcome problems like ‘where will the income come from?’, ‘how will the home loan be paid?’ or ‘will my beneficiaries receive assets but have to pay too much tax?’.

With Modern Estate Planning advice your wealth can be preserved and distributed to your loved ones in the best possible way. Challenges to Wills are common, and people and relationships change. With proper Estate Planning advice you can plan for the consequences of Court Orders under the Family and Family Provision laws for your Estate.

Without Modern Estate Planning a person’s assets may be unnecessarily at risk during their lifetime and/or their intentions for the passing of wealth upon their death may not be fulfilled. Even when it appears that a person’s circumstances are straight forward, their intended beneficiaries’ circumstances may be more complex and if not properly considered or anticipated the intended benefit of a future inheritance may be frustrated.

Modern Estate Planning is particularly relevant where a person has:

• significant assets (such as an unencumbered house, an investment property or cash/savings),
• a business (especially if the business is co-owned),
• infant or disabled children,
• one (1) or more former spouses,
• children to one (1) or more partners,
• loans/advances to adult children,
• no personal insurances,
• significant Superannuation or a Self Managed Super Fund (‘SMSF’),
• significant current or prospective liabilities (either personally or guaranteed), or
• an expectation of a significant future inheritance.

Regardless of the level of Estate Planning you decide to implement the most important thing is that you are fully informed of the legal implications relevant to your circumstances and are able to make the right decisions about your Estate Plan now and in future. Modern Estate Planning need not be complex or expensive. However, we should all have an Estate Plan and at certain times in our life we need to revisit our Estate Plans.

If you know someone who falls in one (1) or more of the above categories there is a good chance they have not received proper Estate Planning advice. You will be doing them a favour by passing on our details and suggesting that they contact us to arrange an Estate Planning Needs Appraisal for their individual circumstances. If the person is a parent or other person from whom you may receive an inheritance, you will likely also be doing yourself a favour.

Asset Protection Trusts

What is an Asset Protection Trust? (also known as a Testamentary Trust)

An Asset Protection Trust is simply a Trust created by a valid Will and funded by Estate Assets. The Trust commences when the Executor finishes administering the Estate. There a many different types of Asset Protection Trusts that can be established in a Will. However, most Asset Protection Trusts appoint the ultimate beneficiary as the Trustee of the Trust and grant them an absolute discretion in relation to the Trusts administration. Asset Protection Trusts may also be optional or mandatory. Most Asset Protection Trusts are optional so that the Primary Beneficiary has the option of not using the Asset Protection Trust in whole or in part as well as the ability to wind up the Asset Protection Trust at any time.

What are the Benefits of Asset Protection Trusts?

Asset Protection Trusts provide asset protection for Beneficiaries and are particularly important as it is virtually impossible to know exactly what a Beneficiary’s circumstances will be at the date of death of a Willmaker or thereafter. Discretionary Asset Protection Trusts also provide advantages for tax minimisation by allowing taxable capital gains and taxable income to be distributed to one (1) or more persons of class of persons who are beneficiaries of the Asset Protectection Trust (these people are usually the named Primary Beneficiary of the particular Trust and their partner and children).

Modern Estate Planning Frequently Asked Questions

When should I review my Estate Plan

Generally, a person's Estate Planning should be reviewed every few years. However, you should review your Estate Plan on a timelier basis under the following circumstances:

• Consideration of marriage or commencing a de facto relationship,
• Breakdown of a marraige or de facto relationship,
• Starting a business or becoing a co-owner of a business,
• If you have made or are considering making loans to adult children,
• You are siblings or friends planning for retirement,
• Your Accountant or Financial Planner has recommended you establish a trust,
• You plan to make investments in property, shres or business,
• If one or more of your intended beneficiaries start a serious relationship, commence a business or are employed in an at risk profession.

What might happen if I do not have a proper Estate Plan?

Without proper Estate Planning your assets may be unnecessarily at risk during your lifetime and/or your intentions for the passing of wealth upon your death may not be fulfilled. Even when it appears that a person's circumstances are straight forward, their intended beneficiaries' circumstances may be more complex and if not properly considered or anticipated the intended benefit of a future inheritance may be frustrated.

What is Modern Estate Planning?

Modern Estate Planning is not just about making a Will, Power of Attorney and Appointment of Enduring Guardian. Modern Estate Planning is planning for the preservation fo your wealth during your lifetime as well as planning for the successsion of that wealth to your intended beneficiaries upon your death.

Who could contest my Will?

The following people are 'eligable persons' who may apply to the Court for a family provisions order in respect of the Estate of a deceased person:

• a person who was the wife or husband of the deceased person at the time of the deceased person's death,
• a former wife or husband of the deceased person,
• a person with whom the deceased person was living in a de facto relationship at the time of the deceased person's death,
• a child of the deceased person,
• a person:
  • who was, at any particular time, wholly or partley dependent on the deceased person, and
  • who is a grandchild of the deceased person or was, at that particular time or at any other time, a member of the household of which the deceased person was a member,
  • a person with who the deceased person was living in a close personal relationship at the time of the deceased person's death.

Have all lawyers studied  Modern Estate Planning?

No. These days Wills and Succession courses are not compulsory at many universities. Also, as proper Modern Estate Planning encompasses asset protection strategies relevant to the protection of your assets during your lifetime, only lawyers with an indepth understanding of family, property and commercial laws are properly equipped to offer a comprehensive Modern Estate Planning Service. In fact, complete Modern Estate Planning requires that your Modern Estate Planning lawyer liaise with your Financial Planner and Accounting where necessary to ensure that Modern Estate Planning strategies are the best for your circumstances from every perspective.

Ask us a Modern Estate Planning Question

If the information that you are seeking is not above please feel free to ask us a Modern Estate Planning question. We will gladly provide you with our considered response.

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