When people make their Will, they typically concentrate on their personal assets, and they sometimes forget about their business assets & responsibilities.
If you are a director of an Australian company, then you need to know that you have responsibilities relating to that company, which can include:
Personal liability of directors for unpaid company taxes;
Personal liability of directors for unpaid company superannuation;
How many things in your life do you manage or store on your computer, tablet, smartphone or online? Like many people today you probably access photos, videos, music, e-books, blogs, movies, emails, conversations, social media, games, bank accounts, medical records, and even your identity – all online.
All of these are called “digital assets” and they may be of financial or sentimental value to you and your family. They can be just as precious and important as physical assets that you can touch. They should be part of your general planning for what happens when you die or if at any time you are unable to manage your own affairs.
YOYO stands for You’re On Your Own, and it has never been truer for Australian retirees.
In the 1980’s when Bob Hawke and Paul Keating changed government policy to encourage us all to save enough money for our eventual retirement, we did so with an expectation of mastering our own destiny to enjoy a wonderful and carefree retirement.
The idea was to reduce the dependence upon government funds for the old-age pension.
There has been a tremendous change in the social culture of Australia in the 40 years or so since superannuation commenced.
To help implement your wishes, trusts and estate lawyers need to ask some tough questions.
Some of them might make you squirm.
Thinking about the following issues in advance can help you prepare for a meeting about your estate plan.
#1. What if you all die in a common disaster?
You may have thought the hardest decisions associated with formalising your relationship related to organising the party and keeping uncle Fred away from cousin Merle, but here are a few other considerations…
Change of Name
Traditionally, when a woman married, she took the last name of her husband. However this is not as common as it once was, and there is no legal compulsion to do so.
You’re not alone. Every Australian family will be affected by dementia. As we get older, we need to have in place some important legal documents to protect ourselves, our family and our assets. If you wait too long, it could be too late.
In 2021 dementia affects almost 50 million people worldwide, which is predicted to increase to 131.5 million people by 2050.
Every three seconds another person somewhere in the world develops dementia.
COVID has been scary and frustrating for most of us, and the future remains uncertain.
But if you were looking for a silver lining in all this, I can maybe offer two observations:
1. People have had to learn how to connect digitally a lot more efficiently, so we are all a lot more familiar with zoom meetings now.
This will hopefully mean that we stay connected a bit better from now on, no matter how busy the world gets again.
Most people in Australia badly misunderstand what happens to their superannuation after they die.
The biggest mistake people make in this area, is thinking that they can give their super to whomever they wish outside of their Will.
In fact, federal Australian legislation places substantial restrictions on who can receive your super after you’re gone.
Could there ever be a legal expectation of a “use-by date” for humans?
We might scoff at such an outlandish notion, and relegate it to science-fiction, but should we be so quick to dismiss it entirely?
If Walt Disney wants to spend his own money to cryogenically freeze his body immediately after his death, in the hope that one day medical science will be able to cure him, then most people would probably shrug and say “So what – it doesn’t affect me.”
But what if a person with limited assets wanted to do this, with the effect that their entire deceased estate would be consumed by the expense. Would the law (driven by societal expectation) permit that person’s children to over-rule the deceased’s wishes, switch-off the freezer and spend the savings?
You might argue that the person was already dead, but does this automatically forfeit all human rights, and if so are we truly “dead” while there remains some hope for recovery?
Let’s take it one step further: What if the patient has not died, but medical science permits his doctors to preserve his body in a form of coma indefinitely (again in the hope of benefitting from further advances in medical science in the future). If he is still “alive” then should he be permitted to spend his own money, regardless of any limit to the normal human life-span? Should there be any limits? Who decides? Should the rest of us be required to contribute towards the expense of his longevity (via Medicare & Centrelink, funded by our taxes)?
Another year has passed and 2018 is already here. The New Year is a time of optimism and noble resolutions to quit bad habits, get organised, pay off debt and save money. It’s a good time to take a look at your estate plan to make sure it is in place and up to date.
Your estate planning documents determine who will receive your property when you die, and also determine who has the right to make financial and major medical decisions during your lifetime. Getting your estate plan right will save money and heartbreak for you and your family.
Less than half of adult Australians have any estate planning documents in place and many of those people may have outdated documents. Documents that were created when you first got married or when your children were born may need updating years later, after your family and financial situation have changed entirely.