Wills

Ensuring your intentions are clearly set out

Why you need a will
You put a lot of time and thought into managing your financial affairs during your lifetime, so it makes sense to consider what happens when you are no longer around.

Without a will, your estate will be administered by a Court-appointed administrator who may not have the experience and knowledge to look after your estate in the way you would want.

People you care for may be left vulnerable at an already difficult time. Or they may miss out altogether in receiving a share of your estate.

Your will gives you peace of mind from the knowledge that you have left clear instructions and that someone you trust will carry them out.

 What is a will?
 A will is made up of a number of different sections including:

• Revoking an earlier will
• Naming an executor
• Bequeathing your assets. This is the main part of your will and sets out how and to whom you wish to leave your assets.

 Do you need to change your will?
 Just as important as making a will is ensuring that you keep it up-to-date.
 If any of the following circumstances have changed, it may be best to contact your adviser.

• Change of assets
• Erosion of assets due to inflation
• New or different beneficiaries
• New or different executor or executors
• Marriage or remarriage
• Separation or divorce
• Your children have married, divorced, had children themselves etc

Some definitions

Beneficiary
A beneficiary is a person or entity who is entitled to receive a gift of property, cash or investments through your will.

Dependant
In each state, legislation allows certain people to challenge your will if they feel they haven’t received the benefits they had reason to expect. They are known as ‘dependants’.

Executor
Your executor will be responsible for carrying out the provisions of your will.  As an authorised statutory trustee company, Trust can act as your executor.

Trust
Sometimes it can be best not to leave a bequest or legacy directly to a beneficiary. Instead you may choose to establish a trust administered by the executor as trustee to manage the fund on your behalf.

The beneficiary of a trust may receive a regular income while the capital is invested and managed by the trustee or, depending on the conditions, may have some access to the capital.

It is good to know that there are tax benefits for minor beneficiaries of a trust, including a tax-free threshold on each minor’s income.

Special Needs Trust
This is a trust for beneficiaries who are unable to manage their affairs themselves.  This could be due to age or mental or physical restrictions, or you may simply feel that it would be the wiser option.