General Estate Planning issues (Wills, PoA, AHDs)

[get me outta here]

Many super funds have insurance as part of your super account. Best to check that first. If you now say that you don’t have any super I’m gonna tell you to get a good financial planner ASAP who will also recommend a good lawyer for the will.

Wife is being taken care of in a number of ways. It's not personal. We have some money in Thailand and continuing to save. We will eventually build a house in Thailand. Land is in wifes name as I cannot own anything other than condos as a foreigner and daughter is too young.

Life insurance could be a good idea but I haven't researched much. I still don't know how life insurance works and how life insurance companies make money. Everyone dies right? If I take out a $250,000 policy right now the premiums are ~$110/month. Do the premiums increase as you get older?

 

[Milboo]

I have never felt that a Will is a must do item. Do we have inheritance tax?

@get me outta here I think mum and dad are beneficiaries of my superannuation. I will update to include daughter instead although I need to think about that one and what it would cost as I don't want my daughter accessing any money before she is 30. I want her to work and learn about life instead of having the ability to throw money away because she has more than enough.

Then you simply need to have a will in place with a trust in it, that vests in her on her 30th birthday, but with provisions that the trustees can use the funds for advancement of education etc.

And your parents cannot be binding nominations in your super as they are not your financial dependents. Your wife and your daughter should be the nominees - but it is a little redundant as your will should address it, and if you die without one, then the law.

Given your health issues and your wife’s uncertain visa status, and the existence of a daughter (who’s access to your estate you wish to control), a well drafted will is essential and a this week thing to do, not next month.

 

[cove]

JohnK get a good lawyer to prepare a will for you. You should then review your will every 5 years as circumstances can change.
I have wound up several estates and an unambiguous will is a necessity.

 

[JohnK]

They can do. Depends on the cover. Also think about how your family will cope if you suffer a debilitating illness (cancer or stroke) and are out of work for a time with no income.

We have other income. There's a share portfolio easily sold.

 

[drron]

But John if the shares are in your name and you die without a will those shares can not be sold by your wife.

 

[JohnK]

But John if the shares are in your name and you die without a will those shares can not be sold by your wife.

True. We're ok if I can't work again for any length of time. If I die I know my wife would not want to live here. Just need to make sure there's enough for wife and daughter to live in Thailand.

 

[Pushka]

The best legal advice I received just prior to my mother’s very imminent death was for my brother and I to open up a joint account with mum as one of the holders, which as we both held power of attorney for her, we could do as she was unable to do so and put most of her money into that account. We trusted each other implicitly. It meant that any expenses could be easily settled. She only had a small amount of cash (around $100k) and we moved all but $5000 into that account. So at a suitable time we divided that large amount up with no lawyers involved. And it took us months dealing with the bank to get that $5000 back.

This is what I’m planning to do with any lump sums of cash I may have when I know I’ll have no need for it.

 

[drron]

Stop being stubborn John.Sometimes you do have to spend some money so things will be protected in the future.Again if you die with the shares in your name without having a will your wife will never get those shares.The Public trustee will sell them and it will be at market and unlikely to get what you think they are worth.then your estate will be charged a fee for that "service".Your wife will be left with very little of what is in your name
There are wills for people who hate spending money but get advice on how to do it by someone who has knowledge of the process.

 

[get me outta here]

Just since Christmas I have been preparing a 1 pager to note all my accounts and acct numbers (but not written actual p/w down).
I have made provisions for others to access the accounts and move things quickly before it is too late. Not CC of course as they are too fungible, and they are a debt so that's OK.
If I haven't actually dropped dead, I will do as Pushka has done and move everything before the end. That will cover the majority and make the probate easier and put the money into others accounts quickly. Also, if you know the end is nigh, selling equities could be considered.

Any experts here have any thoughts on this strategy?. Obviously, trust is a major asset.

 

[get me outta here]

No so "easily" after you die, me thinks - it's a major pain in the bum.

.. There's a share portfolio easily sold.

 

[Pushka]

No so "easily" after you die, me thinks - it's a major pain in the bum.

Agree. And JohnK I’m a little confused why your assets haven’t been put into joint names as that solves most of the issues.

 

[Pushka]

Just since Christmas I have been preparing a 1 pager to note all my accounts and acct numbers (but not written actual p/w down).
I have made provisions for others to access the accounts and move things quickly before it is too late. Not CC of course as they are too fungible, and they are a debt so that's OK.
If I haven't actually dropped dead, I will do as Pushka has done and move everything before the end. That will cover the majority and make the probate easier and put the money into others accounts quickly. Also, if you know the end is nigh, selling equities could be considered.

Any experts here have any thoughts on this strategy?. Obviously, trust is a major asset.

Obviously I agree with all that! I have a sheet with all my details on it and being self employed there’s a lot of business stuff on it. I’m also thinking that I’d rather see the kids enjoy some of the assets, rather than just wait until I’m gone. Of course I need to do the maths correctly for that one and I will not end up in a Nursing Home.

Because of how we managed the money before mums death and it was all cash, there was no probate at all. Which is why I was so impressed that the lawyer had basically withdrawn from being able to charge us.

 

[JohnK]

Agree. And JohnK I’m a little confused why your assets haven’t been put into joint names as that solves most of the issues.

How do you propose that's done with property? It's a minefield and that's without all the costs involved.

And no @drron, I'm not being stubborn. The issue is not as straight forward as people think.

 

[Pushka]

How do you propose that's done with property? It's a minefield and that's without all the costs involved.

And no @drron, I'm not being stubborn. The issue is not as straight forward as people think.

If there is no mortgage it’s not complex at all to add a spouse to the title. I don’t know why you think your affairs are so much more complicated than everyone else’s.

 

[get me outta here]

Possibly it is because @JohnK has overseas relos that complicates matters. All the more reason to get good advice to protect the assets.

If there is no mortgage it’s not complex at all to add a spouse to the title. I don’t know why you think your affairs are so much more complicated than everyone else’s.

 

[Renato1]

How do you propose that's done with property? It's a minefield and that's without all the costs involved.

And no @drron, I'm not being stubborn. The issue is not as straight forward as people think.

Hi John,
Writing wills is simple if one has a wife and kids and one wants to leave it all to them in the end. More complicated otherwise.
If the former, you just write a will leaving everything to your wife naming her executor, or state that if your wife predeceases you, then leave it to the kids naming one of them as executor. Get it signed by two independent witnesses as you sign it (preferably younger than you).

The only complications arise when there is someone you don't want to leave anything to (might result in legal action), or if your wife wants to play favourites on her death (as elderly types are often conned into doing by one of the siblings) in which case one may be wise to leave something to them in the first instance, just in case, else one or more may wind up with little or nothing.

Good advice is availabe all over the internet, and newsagents used to sell will kits for $20.
How to Write a Will - What to include in your will | Canstar

I had a will written up for me for free by my Professional Association, which I then scanned with optical recognition software, and which I then used as the basis to write wills for my parents and wife (it included nice looking legalese). Works fine.

In my opinion, whatever you do - do not use something like the State Trustees that we have in Victoria.
Regards,
Renato

 

[Pushka]

Possibly it is because @JohnK has overseas relos that complicates matters. All the more reason to get good advice to protect the assets.

Sure but if nothing is stated in a will then there could be claims.

 

[JohnK]

If there is no mortgage it’s not complex at all to add a spouse to the title. I don’t know why you think your affairs are so much more complicated than everyone else’s.

They are investment properties. Don't you think I'd love to split my income? Some mortgage involved. There's capital gains tax involved. Wife is not a resident. Accountant has advised against it.

I'm not different to anyone else but don't have the same issues or place the same importance.

Wife's passport expires in October. We are going back in April and apply for passport but it takes 10 days and will be sent to village but we may not be there again until June/July. So when we return to Australia she will not have 6 months validity on passport. Issues?

Which reminds me. Another $145 on Bridging B visa.

 

[Pushka]

They are investment properties. Don't you think I'd love to split my income? Some mortgage involved. There's capital gains tax involved. Wife is not a resident. Accountant has advised against it.

I'm not different to anyone else but don't have the same issues or place the same importance.

Wife's passport expires in October. We are going back in April and apply for passport but it takes 10 days and will be sent to village but we may not be there again until June/July. So when we return to Australia she will not have 6 months validity on passport. Issues?

Which reminds me. Another $145 on Bridging B visa.

I’d probably get a lawyer involved in that. An accountant will be looking at the dollars but not necessarily the legalities of needing a will.

 

[Milboo]

Hi John,
Writing wills is simple if one has a wife and kids and one wants to leave it all to them in the end. More complicated otherwise.
If the former, you just write a will leaving everything to your wife naming her executor, or state that if your wife predeceases you, then leave it to the kids naming one of them as executor. Get it signed by two independent witnesses as you sign it (preferably younger than you).

The only complications arise when there is someone you don't want to leave anything to (might result in legal action), or if your wife wants to play favourites on her death (as elderly types are often conned into doing by one of the siblings) in which case one may be wise to leave something to them in the first instance, just in case, else one or more may wind up with little or nothing.

Good advice is availabe all over the internet, and newsagents used to sell will kits for $20.
How to Write a Will - What to include in your will | Canstar

I had a will written up for me for free by my Professional Association, which I then scanned with optical recognition software, and which I then used as the basis to write wills for my parents and wife (it included nice looking legalese). Works fine.

In my opinion, whatever you do - do not use something like the State Trustees that we have in Victoria.
Regards,
Renato

Writing your (or other people’s wills) based on one prepared for you is never ever a good idea.

There is a reason you spend a fair chunk of time learning wills, trusts and estates in law school.