Articles | Genders and Partners

Bank of Mum and Dad the hidden dangers of family loans

As Australia’s cost-of-living crisis drags on, a large new form of intergenerational wealth transfer has emerged.
Parents are increasingly risking their own financial security to help their adult children enter the property market.

Recent research from Compare Club’s biannual Bill Stress Index reveals the trend: one in five parents have already provided substantial financial support to their adult children, with many gifting or lending amounts exceeding $75,000.

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Uncomfortable questions from an estate planning lawyer

Facing our mortality can be stressful for many of us. But failing to plan has the same outcome as planning to fail.

So all of us need to be brave enough to do what needs to be done, despite our fears.

After 38 years in legal practice, there isn’t much that still surprises me. I think I’ve pretty much seen it all.

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How to provide for Children with Special Needs

Special needs children (of any age) are those that need extra care due to a physical or mental condition, such as a developmental disability, autism, cerebral palsy, mental retardation, or any of the dozens of other significant issues that can affect their legal capacity and autonomy.

Many parents in South Australia have children with special needs and know all too well about the extra care they require, the government benefits they rely on, and the financial challenges they face.

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Hidden Gifts from COVID

The COVID Pandemic caused massive disruption and pain throughout the world. The effects are still being felt, and will continue for a long time.

But from a certain point of view, the crisis of COVID created opportunities that might not otherwise have arisen, or at least not as quickly.

Consider these activities, using a Then > Now perspective:

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What does an Executor do?

Social media and mainstream news outlets are filled with reports about disputes in deceased estates. There has been a big increase in the numbers of these actions in recent years. Often they relate to criticism of how an Executor has administered a deceased estate.

In most cases, a trusted family member or friend is appointed as an Executor. So, what are they doing wrong? Sometimes it isn’t easy to stay on the right side of the law when acting as an Executor.

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What is Probate and is it always required in South Australia?

Probate is the process of a Court establishing that a Will is valid and represents the final testamentary intentions of the Testator. There are time limits for a Will to be submitted to the Probate Court after the date of the death of the Testator.

When someone dies, their estate is represented by an executor or administrator. If the deceased person has made a Will it is the named executor(s) who will be charged with the responsibility of implementing the terms of the Will and administering the estate.

Usually, subject to the value of an estate, an executor(s) is required to obtain what is called a “Grant of Probate” from the Supreme Court of South Australia. The Grant of Probate is a process whereby a deceased’s Will is validated as being his or her last Will. Upon a Grant of Probate being made, an executor then has the responsibility of implementing the terms of the Will by distributing the assets of the estate to the nominated beneficiaries after payment of liabilities and expenses.

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A Death Tax by Stealth

Did you know that your superannuation savings could be subject to a hefty tax when you die?

Most people don’t know it, but there are death taxes by stealth in Australia.

While it’s not an inheritance tax per se, if it looks like a duck and quacks like a duck …. Millions of Australians’ retirement savings are taxed upon their death, and yours could be too!

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What you need to know about the new succession laws in South Australia

From 1 January 2025, new SA laws will likely make it more difficult for some family members to challenge the provision of assets in a Will, while others may have a greater claim to an inheritance.

The oldest law firm in SA explains some of the key changes to the circumstances under which a person may be entitled to a deceased person’s assets.

On 1 January 2025, three South Australian Acts are being repealed and replaced with one Act, the Succession Act 2023, making it an appropriate time to consider your current succession planning arrangements.

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What is a corporate trustee and why would I want one?

#1. Benefits of a corporate trustee

Corporate trustees are companies created to manage a trust on behalf of the beneficiaries.

The assets of the trust must be registered in the name of the company.

You may opt for a corporate trustee to manage your family trust because it offers more flexibility for estate planning, tax benefits and limited liability.

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Payment to act as Executor

As executor of a deceased estate you need to take a lot of care and responsibility. But what, if anything, are you entitled to receive for your efforts?

In the last month I have received multiple enquiries from executors asking this question. The answer is not what they want to hear.

As executor you may pay (or reimburse) your reasonable out-of-pocket expenses from the estate’s assets.

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