Let s talk about Wills. Your pocket guide to Wills and Estate Planning.

Transcription

1 Let s talk about Wills. Your pocket guide to Wills and Estate Planning.

2 Let s be honest, nobody really wants to make a Will. In fact, according to the Australian Bureau of Statistics, half of all Australians pass away without one. But what many people don t realise is that making a Will is actually the easy part. It s what comes next that can often wind up being confusing, complex and stressful. At Tasmanian Perpetual Trustees, we believe that making a Will, and everything that happens after that, doesn t have to be so complicated. We re dedicated to providing the highest level of personal service and offer financial expertise that is underpinned by years of experience in Estate Planning and Will Preparation. We ve put together this easy to understand guide on everything you need to know about Wills and Estate Planning. We re committed to making this process as simple for you as possible, and we promise it can be. What is a Will? Let s start with the basics. A Will is a legal document that spells out how you d like your assets to be distributed when you pass away. It also says who is responsible, be it a loved one, a solicitor or an organisation such as Tasmanian Perpetual Trustees, for carrying out your wishes. 2 Wills and Estate Planning Wills and Estate Planning 3

3 What is an Estate? An Estate doesn t just refer to property or land, it actually includes a number of things that could be overlooked, including: Whether you re already a beneficiary in someone else s Will or family trust Farming, crops and livestock Personal items, including furniture, cars and jewellery Any business interests Superannuation Cash, both in hand and in the bank Life insurance policies Liabilities, such as loans and debts Real estate Investments and securities, like debentures, bonds, shares and managed funds Term Deposits and annuities Why is a Will important? Wills do more than just determine where your assets go. They determine who will be provided for when you pass away, so you can continue to look after your loved ones even after you re gone. They help Executors understand what you want done with your estate and eliminate any disagreements that may happen over your estate. Wills also keep the process of distributing your assets simple, so your loved ones don t have to cope with mountains of complex paperwork during their time of grief. Revising your Will is just as important as making one. Things change, and it s important your Will is kept current with changes such as moving house, marriage or divorce, or if there has been a birth or death in your family. Put simply, Wills make everything easier for everyone involved. 4 Wills and Estate Planning Wills and Estate Planning 5

4 What is an Executor? The choice of Executor in a Will is very important because they are responsible to settle the estate. Executors can be family members, trusted friends, solicitors or an independent specialist Trustee, Tasmanian Perpetual Trustees. An Executor has many duties and responsibilities. These include: What if you pass away without a Will? This is known as intestate. Your Estate will be distributed under a statutory scheme and this may not reflect what you would have wanted. An Administrator will be appointed by the Court. The Administrator is often the closest relative and may be unskilled or actually in conflict with other beneficiaries. Locating the Will and speaking to beneficiaries about their options and the process of settling the Estate Obtaining legal documents for Court including the Death Certificate Redirecting mail Ensuring the assets are properly protected while the process of settling the Estate is carried out. This includes adequate insurance for any properties or collecting valuables and income, etc. Investing funds Applying for Probate (the Court s Order to carry out the Will) Identifying all assets and liabilities and preparing a statement for beneficiaries Asset discover, finalising tax obligations and other liabilities, consulting with beneficiaries and managing the sale or transfer of assets Mediate beneficiary conflicts and defend any legal claims made against the Estate Distributing your Estate Setting up and administering any ongoing Trusts 6 Wills and Estate Planning Wills and Estate Planning 7

5 What to consider when appointing an Executor. For most of us, if asked who we want to be responsible for sorting out our Estate after we re gone, there s usually an obvious answer. It may be a partner, an eldest child, a brother or sister or a parent. But as that lengthy list above tells us, being an Executor can be quite complex and at times a little confusing. More often than not, it requires very specific skills and experience to manage everything successfully, so here are a couple of things to think about before you appoint your Executor. Time Does the person you appoint have enough? Settling the Estate can often be a lengthy, time-consuming process that requires great attention to detail. Does the person you appoint have the time? Who is best suited to the role? Many people believe solicitors will always take on the role of Executor. Some solicitors however will decline to do so preferring to just provide estate legal services because of the onerous and personal legal responsibilities of an executor. Make sure that whoever you appoint as your Executor is aware of and equipped to carry out all of the duties and responsibilities. Our roles and responsibilities chart can help you understand who does what. Health and Location Will the person outlive you, or be in good health when the time comes? Will they still live locally and be easy to contact? Conflict of interest If the person you appoint is benefitting under your Will as well as administering it, will there be tension in the family? Are you confident they will be able to handle it? Liability The Executor is legally liable for the administration and settlement of the Estate. This means if anything is not completed properly, the Executor is responsible. Emotional Distress The loss of a loved one is a very difficult time for all involved. Will the person appointed be able to cope with the responsibility, or will their time be better spent with other loved ones who are grieving? 8 Wills and Estate Planning Wills and Estate Planning 9

6 How can we help? Why us? Tasmanian Perpetual Trustees was established especially to be an impartial and professional Executor and Trustee for Tasmanians. We ve got over 120 years of experience in Wills and Estate Planning. You will have the confidence of knowing your estate will be managed professionally, by local experts. Appointing Tasmanian Perpetual Trustees as your professional Executor is very simple. Talk to us for more information. We ve got years of experience, so we know exactly how to carry out all the duties and responsibilities of an Executor. We re objective, independent and professional, so you can be sure that family conflicts or biases won t get in the way of managing your Estate. We re insured against loss, so you can relieve your family members of the pressure that comes with responsibility and personal liability for mistakes. We have lasting resources, so you can feel confident knowing we ll manage your affairs from start to finish, without the potential interruptions of failing health, death or other issues that may affect a family member as Executor. To make an appointment, call us on or visit tptl.com.au 10 Wills and Estate Planning Wills and Estate Planning 11

7 WORDS YOU NEED TO KNOW Beneficiary the person or persons that benefit from your Will Probate the Court s approval to carry out your Will Testator the person who has made the Will 12 Wills and Estate Planning Wills and Estate Planning 13

8 Roles and responsibilities. This table gives you an idea of the roles and responsibilities required of the Executor, as well as who is qualified and capable of helping you with each one. Of course, the below is just an example and doesn t take into account your own personal circumstances, so some things may vary. ROLES AND RESPONSIBILITIES YOU SOLICITOR TPT Locate and review the Will and any amendments that have been made Check that the Will is valid (i.e. is it the most Initial responsibilities Advising and insuring Legal issues up to date version? Is it properly signed, dated and witnessed?) Check if the Will is affected by marriage/ divorce of the testator, or the deaths of named beneficiaries Locate and contact all beneficiaries Help with the arrangement and payment of the funeral Inform organisations of death (i.e. banks, insurers, Centrelink etc.) Make sure the Estate is adequately protected (i.e. check insurance policies for home and contents) Arrange for any pets to be taken care of Redirect mail and pay any outstanding bills Contact any professionals or service providers involved (i.e. lawyers, accountants, utilities etc.) Manage any TFM claims (these can be made up to six months after the date probate is granted) Arrange legal defence of any claims made against the Estate ROLES AND RESPONSIBILITIES YOU SOLICITOR TPT Put together a complete list of Estate assets and liabilities Identify how each asset is owned (i.e. sole, joint or tenants, or tenants in common) Confirm assets and liabilities with banks Asset management Probate duties Financial management and financial institutions (i.e. mortgage, debt, interest earned, account balances etc.) Manage all of the Estate s assets, including real estate, personal property and valuable belongings, interstate or overseas property and life insurance and super pay-outs Distribute assets to beneficiaries at the end of the Testator Family Maintenance (TFM) period Submit a probate advertisement on Supreme Court Website Apply for a Grant of Probate from Supreme Court Advertise a Notice to Creditors in the newspaper Check the validity of any creditors claims and pay from the estate if there are sufficient funds Prepare and lodge tax returns, including a date of death return, lodge the final estate tax returns and provide financial statement to beneficiaries Manage cash and finances ongoing Keep detailed records of all transactions 14 Wills and Estate Planning Wills and Estate Planning 15

9 Tasmanian Perpetual Trustees Limited ABN AFS Licence Australian Credit Licence Number is a wholly owned subsidiary of MyState Limited ABN V TPTPOS008