Genders and Partners

Benefits of a Discretionary Trust

Estate Planning, Trusts, Wills, Wills and Estate Planning
Benefits of a Discretionary Trust

Discretionary trusts are flexible estate planning tools that can offer you many advantages, some of which include:

1. Revocable. Because the needs of family members may change over time, a discretionary trust normally allows you to modify trust provisions or change the beneficiaries.

2. Private. A discretionary trust may avoid or reduce the costs and delays of Probate – which is the Court process that oversees the administration of your estate. Because a discretionary trust is not subject to public scrutiny, your beneficiaries and the specific amounts or percentages they receive remain confidential.

3. Continuous. Assets put in a discretionary trust stay under the control of the trustee, until you choose differently. When the trust is established, you can name a successor trustee who will carry on financial responsibilities in the event of your incapacity or death.

4. Flexible. You may add other assets to the trust during your life. The discretionary trust can be especially useful if you own real estate in another state by eliminating the need to have a separate probate proceeding in the other state.

Genders and Partners

Wills and Estate Planning Adelaide: Wills, Trusts and Estate Planning for New and Young Parents

Estate Planning, Wills, Wills and Estate Planning, Young Children
Wills, Trusts and Estate Planning for New and Young Parents

New and young parents often mistakenly consider that have too few assets to bother with creating an estate plan.

They probably have a home with just a small amount of equity, and hopefully they have decent jobs, and reasonable prospects for advancement.

Most of us have superannuation, and many super funds carry life insurance.  In dollar terms, it is not uncommon for young people to be worth more dead than alive.

When considering estate planning they should think about naming a guardian for their children and to make sure their money goes to the kids.

Most people grossly underestimate the money it will take to raise their young children and educate them. They frequently only have a small fraction of the life insurance that is needed. Fortunately, term insurance is relatively inexpensive for young people.

They should consider establishing a Trust to receive the insurance and other assets. This can be done through a Testamentary Trust created in their Will, or as a Discretionary Trust.

A trust provides some asset protection, and professional management for the funds.

Genders and Partners

Wills and Estate Planning Adelaide: The Benefit of Advance Directives

Estate Planning, Planning for Disability and Incapacity, Trusts & Guardianship, Wills, Wills and Estate Planning
The Benefit of Advance Directives

A recent study in the New England Journal of Medicine, shows one in four elderly people require someone else to make decisions about their medical care at the end of their lives.

These findings support the value of advance healthcare directives as a means of making end-of-life treatment preferences known (sometimes called anticipatory directives or living wills).

The study found that such formal estate planning documents improved the likelihood that a patient’s wishes would be followed and reduced emotional trauma among family members.

The results illustrate the value of people making their end-of-life wishes known in an advance directive (living will) as well as designating someone to make treatment decisions for them before the end-of-life stage.  This is why both a Natural Death Advance Directive and a Medical Power of Attorney are necessary parts of a modern integrated estate plan.  Each document fulfils a specific purpose.

The Associated Press reports: “In the study, those who spelled out their preferences in living wills usually got the treatment they wanted. Only a few wanted heroic measures to prolong their lives. The researchers said it’s the first accounting of how many of the elderly really end up needing medical decisions made for them.”

Genders and Partners

Wills and Estate Planning Adelaide: How Estate Planning Trusts Can Protect You and Yours

Asset Protection, Estate Planning, Trusts, Trusts & Guardianship, Wills, Wills and Estate Planning

How Estate Planning Trusts Can Protect You and Yours

Estate planning and trusts are all about planning, not only for your own future, but also the financial well-being of your family and loved ones after you’re gone. However, the reality of life can often get in the way of a smooth transition – divorce, second marriages, step kids, long-term illness and other family changes can sometimes make life and plans unpredictable.

Protecting your wealth & assets and the financial well-being of your family is about a lot more than simply parcelling-out your assets – it’s about providing for yourself & your family members in a way that’s responsible and specifically addresses your personal situation.

Many people make the assumption that estate planning and trusts are only for incredibly rich people. That is wrong.

A family discretionary trust is a very versatile estate planning tool that allows you to address inheritance goals for your beneficiaries – who may still be children, are disabled, are from a mixed family  – and a trust might be the answer to difficult questions like who will manage your assets if you or they become incapacitated.

Typically, when a child inherits money, it is invested for him and held until he or she turns 18 or older. Of course, giving a young person access to a large amount of money at the age of 18 can be dangerous and detrimental to their long-term financial health if they lack maturity or sufficient financial wisdom.  Some parents think that the lure of fast cars and endless parties may be too great a temptation for their beneficiaries to handle at age 18, and so they specify an older age, frequently 21 or 25.

Genders and Partners

Elder Law and Retirement Planning: The BIG Estate Planning Issues

Estate Planning, Planning for Disability and Incapacity, Trusts & Guardianship, Wills, Wills and Estate Planning
Elder Law and Retirement Planning - The BIG Estate Planning Issues

Elder Law and Retirement Planning are areas of estate planning relating to government benefits such as veterans’ pensions, Medicare & Centrelink, as well as to accommodation issues specific to seniors, such as retirement village contracts.  Other issues might include the need for long term care planning, solving disputes with family members, providing for powers of attorney, medical care planning or guardianship.

Elder Law is a growing specialty of estate planning that helps the elderly deal with many of the problems unique to their circumstances as retirees:

  • Preservation or transfer of assets seeking to avoid spousal impoverishment when one spouse enters a nursing home;
  •  Medicare claims and appeals; qualification and application; planning strategies;
  • Centrelink (formerly department of social security) pensions and disability claims and appeals;
  • Private health insurance issues;
  • Superannuation and life insurance issues;
  • Disability planning, including use of durable powers of attorney, discretionary trusts, advanced directives & “living wills,” for financial management and health care decisions, and other means of delegating management and decision-making to another in case of incompetency or incapacity;
  •  Guardianships;
  • Estate planning, including planning for the management of one’s estate during life and its disposition on death through the use of trusts, Wills and other planning documents;
  • Probate;
  • Administration and management of trusts and estates;
  • Long term care placements in nursing home and life care communities;
  • Nursing home issues including questions of capacity, patients’ rights and nursing home quality;
  • Elder abuse and fraud recovery cases;
  • Housing issues, including discrimination and home equity conversions (reverse mortgage);
  • Age discrimination in employment;
  • Retirement, including public and private retirement benefits, survivor benefits and pension benefits;
  • Mental health issues, especially regarding capacity and ability to live independently;

Genders and Partners

Wills and Estate Planning Adelaide: Estate Planning for Illness and Incapacity

Asset Protection, Planning for Disability and Incapacity, Trusts & Guardianship, Wills, Wills and Estate Planning
Estate Planning for Illness and Incapacity

Millions of Australians live with chronic illness or disabling injury. Many more will develop progressive and degenerating diseases of the mind and body.  With so many facing life with such severe challenges, smart estate planning can make the difference between maximising control over your life or falling victim to it.

How should they plan their estate to maximise their freedom, independence & quality of life?

What impact will your chronic illness have upon your health & mobility, your capacity & cognitive functioning? How might this change over time? How do you protect yourself from its effects?

Each chronic illness, whether dementia or senility, Multiple Sclerosis or Parkinson’s disease, Alzheimer’s disease or ALS, diabetes or cancer – has its own unique implications for planning. One-size-fits-all generic assumptions can be detrimental to you and your loved ones.

You should consult a lawyer who specialises in estate planning in Adelaide, preferably one with experience in dealing with the special needs of disabled & incapacitated people.

Your lawyer will discuss with you a variety of legal documents.  These may include Enduring Powers of Attorney, and how they may be tailored to address your concerns.

Other documents may include Medical Powers of Attorney (sometimes called living wills or health proxies), Advanced Directives, and Discretionary Trusts.

Your lawyer can draft legal documents to protect you in the context of your chronic illness, and to address the anticipated course of your illness.

Genders and Partners

Wills and Estate Planning Adelaide: Peanuts and Monkeys in Estate Planning

Estate Planning, Wills, Wills and Estate Planning

It’s not hard to find do-it-yourself Wills or Will-kits and other estate-planning materials on the Internet. But the topic is complicated, and the right solution is specific to each individual.

The laws vary from country to country, and even within Australia they vary from state to state.  They also change over time, and the laws related to estate planning have also undergone rapid changes internationally over the past several years and are starting to change in Australia too.  Further changes to the law are expected in the next few years, as Australian governments try to cope with the retirement of so many Baby Boomers.

If you’re creating or updating an estate plan, it’s essential that you seek the advice of a lawyer who’s well versed in the key issues. Not only can a specialist lawyer advise you how to ensure that your assets are properly distributed and that your health care proceeds in accordance with your wishes, but he can also do so with an eye toward protecting those assets (from creditors, bankruptcy, litigation etc).

Of course, any time you hear the word “lawyer,” it’s natural to worry about the legal costs you might incur. But the process is more affordable than people fear. You might be tempted to postpone creating an estate plan, assuming that you need to have a lot of assets to make the process worthwhile. Alternatively, there are plenty of excuses to delay this important process: waiting until after they are married, until the kids are born, until the kids are grown, until they’ve retired, until the grandkids are born etc. But everyone – regardless of life stage or the size of their estate – should think about hiring a lawyer to draft the basic estate-planning documents: a Will, an Advanced Directive, and powers of attorney.

Before you hire an estate-planning lawyer to draft or update your estate plan, it’s important to understand your role in the estate-planning process. Your estate plan will be most effective if you spend some time at the outset finding the right lawyer for your needs and thinking through what you’re trying to achieve as well as whom you trust to see your wishes through.

Wills and Estate Planning Adelaide: Silence & Procrastination: Your Family’s Enemies

Estate Planning, Wills, Wills and Estate Planning
Wills and Estate Planning Adelaide: Silence & Procrastination: Your Family’s Enemies

When people consider end-of-life issues, they often don’t want to talk about it with their family, out of a desire to spare everybody’s feelings.  After all, death & dying is nobody’s favourite topic of conversation. It makes a lot of people feel awkward & uncomfortable, inadequate & out of control.  As a result they keep hidden their wishes regarding a variety of important issues.   They also tend to put-off making the essential decisions and plans which would really spare everybody’s emotions.

Stress and grief cause a lot of very strong emotions, so leaving important decisions until you are sick, or hoping that family-members will somehow know what to do at that time, can sometimes lead to poor decisions.  Mistakes get made; shortcuts are taken; errors of judgment compound an already-difficult situation.

And (like insurance), you generally cannot put suitable arrangements and protections in place after the disaster has struck.

That is why it is essential for everyone to make appropriate advance-medical and end-of-life decisions in advance. It is far better and easier to make these decisions when you (and your family) are still healthy and calm – it will be less tense and emotionally charged.

Make your advance-medical-directive wishes clearly understood to your family, so there is no need for doubt or interpretation on their part at a crisis-moment.  It can help prevent a lot of problems later and is likely the kindest thing a person can do for the sake of family unity.

5 Common Estate Planning Mistakes

Wills and Estate Planning Adelaide: Even More Reasons to Create an Estate Plan Now

Asset Protection, Wills, Wills and Estate Planning
consultation

Some people think that estate plans are for someone else, not them. A common misconception is that estate planning is only important for the wealthy or elderly. They may rationalise that they are too young or don’t have enough money to reap the benefits of a plan. But here are some more reasons why estate planning is for everyone, regardless of age or net worth.

  • Loss of capacity. What if you become incompetent and unable to manage your own affairs?  Legal, medical and lifestyle decisions will need to be made for you, but without a plan the courts will have to select the person to manage your affairs. With an integrated estate plan in place, you choose that person, through a careful combination of powers of attorney and advanced directives.
  • Minor children. Who will raise your children if you die? Although a court will make the final determination, you are able to nominate the guardian of your choice in your Will, and the court will give very serious consideration to your wishes.
  • Dying without a Will (intestate). Who will inherit your assets? Without a plan, your assets pass to your heirs according to your state’s laws of intestacy (dying without a will). Your family members (and perhaps not the ones you would choose) will receive your assets without benefit of your direction or of trust protection. With an integrated estate plan, you decide who gets your assets, and when and how they receive them.

Genders and Partners

Estate Planning for Every Business Owner

Asset Protection, Estate Planning, Wills and Estate Planning
Wills and Estate Planning Adelaide: Estate Planning for Every Business Owner

Every business owner needs some basic estate planning documents, even if you are not married, have no-one financially dependent upon you, or your business is not worth much yet.   You should consider the potential value of your business, and recognise that it is dependent upon you  If you have a spouse, life partner, or children, you definitely need to consider estate planning documents to provide for what would happen if you die or become incapacitated.

Here are the documents you may need to obtain:

Enduring Power of Attorney

This document gives another person power (your agent) to handle your finances in your absence.  This may include paying your bills, negotiating a lease, dealing with employees, contractors & government departments, or working with your bank.  You can give your agent power immediately or only upon your incapacity.

Medical Power of Attorney

Everyone age 18 and over should have this document.  It names & empowers the person you want to make medical decisions for you, if you cannot do it for yourself.  Do yourself & your loved ones a BIG favour, and create this now.

Will

Your Will says who you want to receive your assets after you die, who should handle your affairs upon your passing, and who you want to be a guardian for your children.  This must be formally executed to be valid, typically with 2 witnesses, depending upon state law.  Everyone should have a Will.

Other Documents

Some of you may need other documents, such as discretionary trusts, property agreements, co-habitation agreements, pre-nuptial agreements, irrevocable trusts, special needs trusts, superannuation trusts or life insurance trusts.