Estate planning

Question 1

Why is estate planning important?

Answer 1

– determine how the estate is to be distributed
– minimise tax
– ensure the correct structures are in place to protect the beneficiaries’ interests.

Question 2

What is a will?

Answer 2

A will is a legal document signed by the will maker, which specifies who will be in charge of administering their estate and how the assets are to be distributed
after death.

Question 3

What must a will need to be valid?

Answer 3

For the will to be valid, the will maker must generally be over age 18 and the will must:
– be identifiable as a will and sufficiently identify the person who is making the will
– be signed and dated before two independent witnesses while in the presence of
the testator
– name an executor or LPR
– provide for the disposition of the whole estate

Question 4

How can a will be revoked?

Answer 4

making another will, which revokes any earlier will
– destruction with intent to destroy, or
– marriage or remarriage.

Question 5

How long can a will last?

Answer 5

A will lasts indefinitely or until there is a need to change it

Question 6

Who is the executor?

Answer 6

The executor is the person or entity given the power at law to carry out the deceased’s wishes.

Question 7

Who can be an executor?

Answer 7

Anyone of sound mind over age 18 may be nominated for the role of executor

Question 8

What is probate?

Answer 8

The state’s recognition and registration of the will, which legitimises the executor’s authority to carry out the terms of the will.

Question 9

What are beneficiaries?

Answer 9

Beneficiaries are the recipients of assets from the estate.

Question 10

When can a will be contested?

Answer 10

A will that makes no provision for a spouse, children or anyone else who was financially dependent on the deceased may be contested in court under state or
territory laws.

Question 11

Can a contested will alter distributions?

Answer 11

Yes.

Question 12

When does Intestacy occur?

Answer 12

Intestacy is where there is no will, or where the will is inadequate.

Question 13

What is a power of attorney?

Answer 13

A power of attorney is a legal document granting a person the power to legally act on
behalf of another.

Question 14

What may a power of attorney be for?

Answer 14

Specified, limited or general purpose.

Question 15

How can a POA be revoked?

Answer 15

A POA may be revoked by the person who first granted it by simply communicating
to the attorney that the power has been revoked.

Question 16

What are the desirable features of an estate plan?

Answer 16

Simplicity, clarity, flexibility and practicality.

Question 17

What is a trust?

Answer 17

A trust is an obligation that the trustee assumes in relation to assets for the benefit
of other persons, of whom they may or may not be one

Question 18

When does an executor have to lodge tax returns for the deceased until?

Answer 18

The executor or administrator is required to prepare and lodge the final tax returns
of the deceased and for the estate until administration is complete.

Question 19

For superannuation, who does legal ownership of superannuation assets vest in ?

Answer 19

The trustees.