Why make a Will?
Why make a Will?
– To ensure your assets are transferred to beneficiaries of your choice.
– To appoint an executor of your choice
– Minimise:
-Costs
-Time
-Likelihood of disputes
– If you do not make a Will, you die intestate
– More than one third of Australians who die each year die intestate
What happens if you die intestate?
- Your estate is distributed according to State legislation. You don’t have a choice.
- Who gets what?
– Spouse only – if estate greater than $75,000.00 then spouse gets that + half the residue. The other half is split between siblings and parents.
– Spouse and child – spouse gets first $50,000.00 plus personal chattels, and the balance is divided into thirds, with two thirds to the children and the remaining one third to the spouse.
Intestacy – some issues
_ Step children not entitled to share
_ Same sex partners can now benefit
_ De facto’s can now benefit
_ Separated partners can claim even if living apart
_ Divorced spouses cannot claim
_ Adopted children can claim from adoptive parents but not biological parents
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Intestacy – actual case
– John – Kate
(employed builder) (Chartered accountant)
– Susan
(estranged daughter)
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– Kate has asset protection issues
– All assets in John’s name solely
– John dies intestate
—–
The Assets
Home at Peppermint Grove: $3,000,000
Pemberton Holiday House: $300,000
Shares & Other: $700,000
Total: $4,000,000
The Result
Kate
first $50,000+ $50,000
Personal chattels + $50,000
One third of balance of estate $1,300,000
$1,400,000
Susan
two thirds of balance of estate $2,600,000
Total $4,000,000
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