An Inheritance Deed is an agreement to protect an inheritance made to evidence a couples intention to make Mutually Irrevocable Mirror Wills (on identical terms) generally with the ultimate beneficiary or beneficiaries being their child/children.
An oral Inheritance Agreement is capable of being enforced, however as with any verbal agreement the difficulty in enforcing it becomes onerous + uncertain as the burden of proof is on the party contending the existence of the agreement.
Therefore, to provide certainty, the parties may consider entering a written Inheritance Deed carefully drafted by a lawyer.
Usually this takes the form of an Irrevocable Deed of Inheritance.
This kind of fixed irrevocable agreement is generally not recommended for a couple unless they are in the later stages of life, and only after obtaining their own independent legal counsel.
By its very nature such an irrevocable arrangement can create future unforeseeable problems if entered into early in life as circumstances can and most likely will change over what will presumably be the remaining decades of their lives.
The longer the potential time frame, the more likely unforeseen problems will arise.
Whilst both parties are still alive, even though the agreement is irrevocable, it is still possible to make changes should the need arise, however both parties must agree to the change, and this can be where problems and disputes arise.
What happens if the parties are unable to agree to the changes to be made, or when one of the parties passes away and the other party then wants or needs to make changes?
In such cases, there is no way to make a change without being in breach of the Inheritance Deed.
The best way to demonstrate the rationale for why a couple might want to enter an Inheritance Deed is by way of example.
A elderly married couple owns their home unencumbered (that is, loan free) and have a child of their marriage who they would like to leave the home as their inheritance.
Whilst both parties may trust each other implicitly, they may still be aware that anything can happen, especially in matters of elder abuse, undue influence, partial loss of mental capacity, fraud, etc.
How can one party know for sure that after they pass away, the other party will do as they have promised?
How can they be sure the other party will not revoke their promised Will and leave everything to their own child/children, and make some other Will on different terms?
How can they be sure the other party will not intentionally act to diminish the estate so their child/children is/are left with no or a greatly reduced inheritance?
By way of example, the following list includes some potential future changes:
⚖️ The couple separates and one or both parties remarry into blended families with other dependent children;
⚖️ One or both parties retire and require income to pay living expenses;
⚖️ One of both parties become ill and require income to pay health + care expenses;
⚖️ The couple have or adopt additional children;
⚖️ The potential number of future Family Provision Claims increases;
⚖️ One party takes a charitable turn and decides they want to leave everything to their local church, or to a further a charitable purpose;
⚖️ There is a falling out with the child/children; or
⚖️ Other unforeseen material changes occur.
Aside from gifts of personal chattels and optional charitable donations, each spouse irrevocably (unless new replacement Mirror Wills are executed):
1️⃣ Leaves their entire estate to the other spouse, and then to their child/children; and
2️⃣ Agrees not to change their Will for any reason at any point in the future. This is the irrevocable part!
If one spouse predeceases the other, the Mutual Smarter Mirror Wills can specify whether their share of the estate should flow to:
➲ The other spouse’s children; or
➲ The predeceased spouse’s children: the latter may be useful in blended family scenarios.
You can also choose:
✅ Whether step-children are included within the definition of “children” for these purposes; and
✅ Specifically name the children (who are substitutes for each spouse).
The days of the “simple” will are over!
Don’t make the mistake of thinking that old-style Wills keep things simple – they can easily lead to complexity and disputes as they aren’t drafted to properly protect beneficiary entitlements and avoid unnecessary taxes.
Our Smarter Will incl. a Testamentary Trust is a cutting-edge document.
Meticulously designed in consultation with leading Australian estate planning experts to provide maximum flexibility and asset protection + tax minimisation.
1️⃣ Discretionary Testamentary Trusts, rights of occupancy and other trust structures that are aimed at giving your executors every possible opportunity to minimise income tax, capital gains tax (CGT) and other tax leakage;
2️⃣ Beneficiary support trusts/special disability trusts that are designed to preserve Centrelink welfare entitlements;
3️⃣ Flexible child guardianship arrangements to ensure as far as possible that your child guardianship wishes are implemented;
4️⃣ Pass control of Family/Discretionary Trusts and SMSF's;
5️⃣ Flexible mechanics for allocating and distributing your estate assets; and
6️⃣ Option to elect to make it mandatory for all beneficiaries to take their gifts via a Discretionary Testamentary Trust (DTT).
Cleverly designed to minimise the potential for:
➲ Family provision claims; and/or
➲ Disputes among the beneficiaries.
Assuming an income of $72K earned from estate assets (eg, rent from an investment property, dividends from shares, etc.) to a surviving spouse who’s total taxable income is $180K, but who has 4 minor children.
If the distribution is paid directly to the spouse under a normal will, [at the time this example was prepared] tax on the distribution was calculated to be $32,400 – HOWEVER, if the distribution is split equally [possible as a result of the Testamentary Trust] between the children, no tax will be payable!
Tax saved in this example: $32,400 … year after year after year.
Your Smarter Mirror Wills have been meticulously designed in consultation with leading Australian estate planning experts to allow you to:
1️⃣ Reduce the need to update your Wills for minor changes; and
2️⃣ Greatly assist your Executor in administering your Estates.
Your Smarter Mirror Wills refer to the following separate lists/directions which importantly DO NOT form part of your Wills!
➲ List of Allocation of Personal Chattels;
➲ Digital Assets (incl. current passwords, and authentication protocols); and
This means that either spouse can update any of the above, at any time, by simply dating + personally signing a revised list/direction (no witnesses required).
All Testamentary Trust Deeds contain broad definitions of eligible beneficiaries in order to provide as much flexibility as possible for Trust Distributions.
Long-lost siblings, uncles, aunts, nephews or even kids born or who may be residing offshore as part of their professional or lifestyle pursuits could be or become foreign persons + trigger the need for compliance with recent NSW legislation.
Failure to mitigate this risk by ensuring the Trust Deed irrevocably prevents trust distributions to foreign persons creates a situation where:
➲ If the Testamentary Trust acquires or leases NSW Residential Land (freehold or leasehold, vacant or with a dwelling incl. strata) it could potentially be liable to pay the 8% NSW Purchaser Duty + 2% Land Tax Surcharge.
Your Testamentary Trusts can be setup to either:
1️⃣ Revocably prevent any trust distributions to any foreign person; This option retains flexibility for the Trusts to reverse its position at some point in the future to allow distributions to foreign persons; or
2️⃣ Irrevocably prevent any trust distributions to any foreign person. This option is highly recommended if your Trusts plan on purchasing or leasing residential property in NSW.
Please contact our legal team if you need clarification or assistance with this complex decision.
➲ Downgrade to Inheritance Deed ➲ Irrevocable Mutual Mirror Wills for Couples;
➲ 💡 Trax Print Fraud + Litigation Prevention Technology $22; and
➲ 🗄 Will hard-copy printing + binding service.
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We recommend that the Will-maker and the witnesses all sign immediately after each other, in each other’s presence and use the same pen.
This is still the best way to make sure a Will is validly executed because then there can be no argument that the formal requirements were not complied with.
Important: A Beneficiary should not be a witness as they may lose their entitlement under the Will. There are exceptions but we still do not recommend using them unless there is no other option.
1️⃣ Use 2 independent adult witnesses who do not have any possibility of a beneficial interest in your estate;
2️⃣ Do not sign copies of the Will as they may become “valid” Wills;
3️⃣ Nothing should be attached to the original Will with a pin or paper clip;
4️⃣ No alterations should be made to the Will after it has been signed.
Please contact us (if you are unsure regarding any of the above) to discuss the best way to proceed to execute your Will when you are ready.
As soon as practical scan your validly executed Will and email us the scanned copy.
At your discretion, you may bind or otherwise staple the Will and store it in a safe place ensuring you tell your Executors where you have stored it.
Due to the importance of your Will, we strongly recommend you hold off and contact us so we can coordinate the professional binding + physical storage of your Will in Safe Custody.
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
As an emergency response to COVID-19 some states + territories have temporarily relaxed witnessing requirements for Wills + other key documents.
The relaxations allow remote witnessing using an audio-video link (AVL) over the internet. We strongly recommend they only be used as a last resort with the involvement of your lawyer. Practical COVID-Safe alternatives such as "Will through a window!" are preferred.
See our recent blog article "COVID-19 Safe Solutions for Witnessing Wills + Other Key Documents in Australia" for more information.
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
If you have important documents – like a Will or Power of Attorney – you don’t want to leave lying around the house, the CBA's Safe Custody envelopes let you store these documents safely and securely at one of CBA's branches.
You can access your documents at any time during bank hours.
The annual fee for keeping your items in Safe Custody envelopes and/or boxes at a CBA branch is as follows:
🗄 Standard envelope supplied by the Bank - $88 p.a.* per lodgement
🗄 Non-standard envelopes - $198 p.a.* per lodgement
💰 Safe Custody box - $198 p.a.* per lodgement
🔒 A.C.T Supreme Court
[$125 deposit, $46 withdraw. Prices effective as at 1 August 2020];
Pursuant to s. 51 of the Succession Act 2006 (NSW) any person may deposit a Will in the office of the Registrar.
The current prescribed fee set by the regulations (as at 1 July 2021) is $137.
🔒 NSW Trustee + Guardian
[$29 one-time fee for a single document; $49 one-time fee for multiple documents. Prices current as at 19 November 2020].
🔒 Custodian Vaults [Sydney, NSW]
"Legal documents take a considerable amount of effort to draw up, execute and are a costly and sometimes irreplaceable.
Items like deeds, wills, and other legal documents are best stored out of the home and in a secure centralised storage facility. These items are not necessarily best stored in the home safe and in almost all cases best kept offsite.
Custodian vaults offers vaults from $25 per month that will store not only a large quantity of legal paperwork but other personal effects like passports, jewellery and bullion.
Custodian Vaults will offer complimentary insurance up to $10,000 and a nominal amount thereafter. Our insurance is underwritten by Lloyds of London, and is significantly cheaper than any level of house and contents insurance, providing peace of mind as well as in some cases necessary compliance."
🔒 ARA Security - Safe Custody [Western Sydney, NSW]
ARA Vaults are experts in the secure storage of a highly valuable possessions, such as gold and silver bullion, heirlooms, important documents and data, cryptocurrency (such as Bitcoin) and jewellery.
They provide a range of different Safety Deposit Boxes and Bullion Safes to suit your storage requirements and they offer free unlimited access to your Safety Deposit Box or Bullion Safe at their private, state-of-the-art vault facility in Western Sydney.
Their vault is equipped with highly secure technology and infrastructure, including Iris Biometric identification, to offer world-class security for your most valuable assets, investments and possessions.
🔒 N.T. Public Trustee
[“You can store your Will for free at the Public Trustee office in a specially maintained vault.”];
🔒 The Victorian Will + Power of Attorney Registry
[Anyone in Victoria can register information about where they keep their Will + Power of Attorney documents at no charge. There is also the option to physically store originals for free];
🔒 W.A. Will Bank
[Free service operated by the WA Public Trustee];
🔒 Reserve Vault [Brisbane, Queensland]
"Secure Document Wallet: Secure document storage held in individual A4 sealed Document Wallet in one of our fire resistance drawer safes. Only $99/year!
🔒 Private Vaults Australia [Redcliffe, Queensland]
Private Vaults Australia chooses single-use bags manufactured from an opaque COEX material and utilise a high security tamper evident tape (resistant to temperature, moisture, and solvent-based tampering).
The non-see-through nature of the material provides complete privacy making them very discreet.
The bags have writable surfaces and printed with unique serial numbers and have a corresponding barcode for convenience.
SCEC Approved
Features
For S.A. + Tasmania
[Contact Us].
Credits:
This FAQ was prepared by Suk Jae Chung | Practical Legal Training (PLT) Placement, Blue Ocean Law Group℠ + James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
Per stirpes means “by branch” in Latin, but is commonly understood to mean “by the bloodline.”
If your estate is distributed per stirpes after your death, each branch of your family will receive an equal share of your estate.
Imagine that Amy has three children: Brigid, Charles, and David.
At Amy’s death, all three children will receive one third of Amy’s estate ➲ if her estate was set up to pass per stirpes.
Assume that Brigid predeceased Amy, and that Brigid has two children, Eleanor and Fergus.
Now at Amy’s death, Charles and David will still receive one third of the Amy’s estate.
Eleanor and Fergus will each share in what would have been Brigid’s share, so both Eleanor and Fergus will take one sixth of Amy’s estate.
These legacy latin legal terms, whilst initially confusing, are very important and can change your childrens' (+ their heirs') inheritance.
The alternative to "per stirpes" is "per capita".
With "per capita" the share of any child beneficiary who dies before you is shared equally among your surviving children ... which means your predeceased child (and consequently, their heirs) would lose their share.
With "per stirpes", in the same scenario, instead of your predeceased child losing their share, it is preserved for their children (if any).
Additional Note:
If the term "per capita by representation" is used (also known as modern per stirpes, American per stirpes), please note that this changes the result of the “per capita" distribution so that it operates the same way as the traditional "per stirpes" distribution described above.
The use of this legal term invokes the concept of a “right of representation”.
This means the heirs of any child beneficiary who predeceases you have the right to representation so they can collect the property originally-intended to go to any predeceasing child beneficiary, so they don't lose their share.
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
Any trust that purports or attempts to last for a longer period is void.
An exception exists for Charitable Trusts created with charitable objects or purposes which can endure forever.
Notes: ^ s62. of the Law of Property Act 1936 (SA) may be used by prescribed interested parties to apply to the Court for orders forcing the South Australian Trust to vest within 80 years.
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
A person can leave assets under their Will to the trustees of a trust already in existence, such as a family/discretionary trust, unit trust or charitable trust.
These are collectively known as ‘inter vivos’ trusts.
In the USA, a Will devising all or part of the estate to the trustee of an existing inter vivos trust is called a Pour-Over Will.
For the gift to be valid in Australia, however, it is necessary that the disposition would not be considered a ‘delegation of testamentary power’.
A delegation of testamentary power is when the person making the Will (‘the testator’) gives another person the power to decide how to dispose of their estate.
Such delegations are barred by the High Court due to their decision in the case of Tatham v Huxtable (1950) 81 CLR 39, where the Court stated that:
“[i]t is a cardinal rule… that a man may not delegate his testamentary power”.
Given that trusts often have a range of beneficiaries, there is scope for argument that a gift to an inter vivos trust by a testator is effectively passing on the decision-making power for who shall ultimately benefit from the estate.
Each case will be assessed on its own facts and circumstances.
1️⃣ Despite the above rule, section 33R of the Succession Act 1981 (Qld) states that a trust or power (created by a Will) to dispose of property is not void, if the same power or trust would be valid if the testator had made it during their lifetime.
This is especially the case if it is easy to determine with certainty who or what class of people are intended to benefit from the trust in question.
2️⃣ In the case of Gregory v Hudson [1997] NSWSC 140, the Court determined that the deceased’s gifting of his entire estate to the trustee of a family trust for the benefit of his family was valid.
In this case, the deceased chose this method so that the independent trustees would make distributions according to each beneficiaries’ individual needs, without being influenced by the tense blended familial relations.
The main advantage of leaving a testamentary gift to a trust is to ensure that that gift is not deprived of the benefit of the concessions found in s 102AG of the Income Tax Assessment Act 1936 (Cth).
If the trust deed permits the trustees to accept “excepted trust property” and the trustees hold this property separately from other trust assets, minors may receive distributions from the trust generated by the separately held trust assets, whilst being taxed at the normal marginal tax rate on those distributions.
This is very different from the rate at which distributions to minors from an inter vivos trust are usually taxed – which can be up to the maximum marginal rate of tax.
A gift to an inter vivos trust may also be advantageous if there are concerns regarding the testator’s legal mental capacity to understand a complex Will incorporating testamentary trust/s where the benefits of a trust are still desirable.
In this case, a gift to an existing trust is a much shorter and more straightforward Will to understand, effectively lowering the hurdle that needs to be cleared to establish a valid Will.
The main disadvantage is the risk that the trust deed may contain express terms which do not allow for the testator’s wishes to be effectively carried out.
There may be express terms in the trust deed preventing distributions being made to certain beneficiaries, or such distributions may only be permissible with the consent of a third party.
For this reason it is important that the trust deed is reviewed by a lawyer to determine whether any such restrictions exist.
If restrictions are identified, these may be capable of being removed while the testator is still alive so that their testamentary intentions are not defeated.
Unless the Will was prepared recently, there is also the risk that naturally arises due to the passage of time.
Generally Trusts in Australia have a maximum life of 80 years (except Charitable Trusts which can exist in perpetuity and Trusts from South Australia where the Rule against Perpetuities has been repealed).
Thus, if the trust has already been operating for a number of years it may only be capable of existing for a short time after the testator’s death (or may, in fact, have already vested, that is, the Trust may have automatically terminated by reaching its own expressly nominated expiration date).
After the Will is executed, it is also possible that the trust's circumstances may have changed such that it is no longer appropriate to receive the gift.
For example: The trust may have exposed itself to an unforeseen risk, or the control of the trust or the members of the beneficiary classes may have changed.
It is also very easy for the trustee to lose the tax advantages provided by the s 102AG concessions by accidentally mixing capital or income and therefore potentially defeating the testator’s intentions, and potentially triggering anti-avoidance tax laws.
In summary, the potential disadvantages of using a Will to gift assets to an existing inter vivos trust far outweigh the potential advantages.
It is preferable (assuming the requisite mental legal capacity) to draft a new Testamentary Trust(s) into the terms of the Will.
Using a new Testamentary Trust ensure the trust will:
1️⃣ Be created in accordance with the testator’s wishes;
2️⃣ Is unaffected by external factors and other risks due to the passage of time;
3️⃣ Avoids concerns regarding early vesting; and
4️⃣ Is less likely to inadvertently trigger anti-avoidance tax laws.
Therefore, unless there are concerns regarding clearing the hurdle of the legal mental capacity required for a complex Will, we highly recommend the use of Testamentary Trusts as the default trust structure used in estate planning.
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
➲ Is the term used in modern Trust Deeds to describe the person who has the power to appoint and remove the trustee.
Accordingly, the Appointor assumes indirect control over the whole operation of the Trust.
We generally recommend joint Appointors or at least a clear succession should the Appointor die.
If there is no nominated successor, the Appointor’s legal personal representative succeeds as the Appointor.
Where an Appointor is deemed to have lost legal capacity (e.g. which might be a possibility if the Appointor suffers from a mental condition such as dementia) and where an Enduring Power of Attorney is in place, the Attorney succeeds as the Appointor.
➲ ‘As trustee for’.
➲ Any ascertainable person or group of people can be the beneficiary of a private express trust.
Person includes a legal person (also called a legal entity) such as a corporation, unincorporated association, etc.
➲ A trust is a charitable trust when it is established for charitable purposes (objects).
“A purpose trust that is directed to exclusively charitable purposes and that exhibits public benefit".
A Charitable Trust may be quite general (for example for the relief of poverty) or highly specific (for example the care of the aged in a specific geographic region).
Charitable Trusts need not have any vesting date, and may exist in perpetuity.
➲ Not really a trust.
It is a remedy decreed by the Court to prevent unjust enrichment.
The trustee will have only 1 duty: to transfer the property to the intended beneficiary as determined by the Court.
It is a means to disgorge a wrongdoer of ill-gotten gains.
➲ Property of the trust. Any presently existing interest in property that can be transferred can be the corpus of a trust.
➲ Pronounced Sigh Pray. It is a phrase adopted from the French meaning, “as near as possible” to the original intention.
➲ In Australia, a Discretionary Trust is a common structure to run a business out of because it offers many taxation advantages.
For Example: The flexibility to distribute profit to different beneficiaries (including streaming of dividends to a particular individual/s), the ability to access significant capital gains concessions and stream those capital gains to a particular beneficiary.
➲ Between living persons, someone transfers or gives property to another person while both are alive, such as a parent giving money or other property to their children.
Trusts established during a person’s lifetime are often referred to as being an Inter-Vivos Trust.
➲ A legal term used in trusts law.
An object of a trust is a beneficiary of that trust.
In Wills where a gift is made to a particular group or class of people, an object means someone from that group.
For Example: The group might be described in a Will as ‘my children’ or ‘my nieces and nephews’.
➲ A fiduciary relationship with respect to property whereby one person, the trustee, holds legal title for the benefit of another, the beneficiary, and which arises out of a manifestation of intent to create it for a legal purpose.
➲ A resulting trust is an implied in fact trust and is based upon the presumed intent of the parties.
If a resulting trust is decreed by the court, the resulting trustee will transfer the property to the settlor if the settlor is alive, and if not, to the settlor’s estate, i.e. to the residuary devisees if any, and if none, to the intestate takers (the heirs).
➲ At common law, the modern rule against perpetuities, is that no interest is good unless it must vest, if at all, no later than 21 years after the death of a life in being who is alive at the creation of the interest.
At common law, an interest is void from the outset if it may possibly vest outside the perpetuity period, such question being determined having regard to circumstances existing at the commencement of the period.
It is not possible at common law, to ‘wait and see’ whether the rule is in fact offended by events as they actually turn out.
The common law rule against perpetuities has been modified by legislation in all Australian jurisdictions, except South Australia where the rule has been abolished.
The most significant reforms to the common law in all jurisdictions where legislative intervention has occurred has been the introduction of a ‘wait and see’ provision, and statutory limits preventing any trust from existing for more than 80 years.
Any trust that purports or attempts to last for a longer period of time is void.
The exception to this rule is for Charitable Trusts.
➲ Generally speaking, a secret trust arises when a testator wishes to keep secret an object within the Will, such as bestowing a benefit to a political cause, or granting a trust to relatives that may be unknown to the wider family.
Secret trusts fall within two general categories: fully-secret and half-secret trusts.
The basic difference between a fully-secret and half-secret trust, is that there is no indication in the terms of the Will that a fully-secret trust exists.
Whereas, a half-secret trust will be mentioned in the Will, but may leave out the identity of the beneficiary, as well as the gift to be bestowed.
➲ The person who initiates the formation of the trust by the provision of the Settled Sum (usually a nominal amount). Apart from providing the Settled Sum and executing the Trust Deed, the Settlor takes no further part in the Trust operations.
A Settlor will often be a family friend or a solicitor or an accountant who will not be a beneficiary of the trust.
Note: The settlor of a Discretionary Trust must be an independent person.
➲ A trust which allows parents or other family members to leave assets in trust for an individual which can be used to fund ongoing care, medical expenses, accommodation, and some discretionary expenditure for that person into the future, without affecting their entitlement to a disability support pension.
➲ A trust where the beneficiary is unable to transfer his/her interest, either voluntarily or involuntarily. He/She cannot sell or give away his/her right to income or corpus, and his/her creditors cannot attached these rights.
➲ A trust where the trustee is required to use only so much of the income or principal as is necessary for the beneficiary's health, support, maintenance and education.
➲ A person (or company) appointed to hold property on trust for others, the beneficiaries subject to the terms set out in a will, as a testamentary trust. Executors are often appointed to act as trustees where a trustee role is required following administration of the estate. However professional advisers or their firms may also be appointed depending on the circumstances.
➲ A trust created by a Will, which only comes into being after the testator passes away.
➲ A Charitable Trust created by a Will, which only comes into being after the testator passes away.
➲ A trust for the care and support of the testator's pets created by a Will, which only comes into being after the testator passes away.
➲ Actually a Totten Bank Account [POD]* not common in Australia (used o/seas)
➲ A legal document that sets out the rules for establishing and operating your trust.
➲ The trust deed functions in much the same way as the constitution of a company, and units in the unit trust operate in a similar way to shares in a company.
➲ The Vesting Day is generally 80 years (except in South Australia) from the date of commencement of the Trust.
That is because, as a matter of law, the Trust must terminate or ‘vest’ at a date not later than 80 years after its commencement.
A provision maybe included in the Trust, which enables the Trustee to nominate an earlier Vesting Day.
Broadly speaking, an eligible person may include anyone to whom the testator has a responsibility, potentially including a current or former spouse or de facto partner, children, grandchildren, other dependants and persons living in the testator's household.
When the testator dies, any "eligible person"may make an application to the court for a family provision order if they believe that there has been inadequate provision for them under the Will.
If an order is made, interests under the Will may be adjusted and the applicant may be able to obtain part of the estate contrary to the express provision of the Will.
There is no guarantee that any particular reasons for excluding an eligible person will be acceptable.
Whilst the likelihood of a successful family provision orders may be reduced by expressly excluding people who may be eligible persons in the Will and providing clear reasons why they have been excluded.
A Court will take into account all of the facts and circumstances.
The following are some examples of reasons that may potentially be considered valid:
🧩 Sufficient provision was made for the excluded person during the testator's lifetime such that further gifts would be unfair to the included beneficiaries;
🧩 The testator and the excluded person have had no contact for a long time and no relationship of love/affection exists between them;
🧩 The testator has not had any responsibility for the welfare of the excluded person for many years;
🧩 The financial circumstances of the excluded person are much better than those of the included beneficiaries and the excluded person is being excluded in order to try to achieve a balance of financial welfare amongst all potentially interested parties; and/or
🧩 The excluded person has received, or is likely to receive, significant assets from the estate of another person (eg, a former spouse of the testator, a former spouse of the testator's spouse, etc).
Please note: The Will becomes a public document pursuant to the Court Probate process, consequently any reasons articulated for excluding an eligible person will ultimately be made discoverable by the public.
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
The following assets will not generally form part of your estate and are therefore not covered by your Will
That is, assets that are:
❌ Held in superannuation accounts, including any self-managed superannuation fund, unless/until those superannuation assets are transferred into your estate upon your passing pursuant to appropriate superannuation death benefit nominations.
Please refer here for binding superannuation death benefit nominations.
❌ Held in any separate family / discretionary trust;
❌ Owned by a company or held in any unit trust; and/or
❌ Held as “joint tenants” with another person (including bank accounts where you are only able to operate the account jointly with another person);
Any assets held as joint tenants can only be dealt with as part of the estate if the joint tenancy is first severed into a tenancy-in-common.
Please note: Our Wills generally do not deal with any assets that are held as joint tenants – however, our Wills give the executor/trustee the power to adjust the proportionate distribution of the estate assets, taking into account both the proportionate distribution of such non-estate assets and the overall tax implications.
See our FAQ: What is the General Power of Adjustment in a Will?
Our Wills are drafted so that they only apply to your assets situated in Australia.
In relation to any assets held in any overseas jurisdictions, it may be necessary to create a separate Will in the relevant overseas jurisdiction, or if the foreign assets are in a country covered by the relevant treaty, an International Will.
In NSW, certain non-estate assets can be considered by a Court in making a Family Provision Order.
For more information please read our FAQ: NSW Family Provision Claims and the concept of the Notional Estate.
If you are a co-owner of any business, consideration should be given to whether your estate will retain or dispose of your share in the business, and vice-versa for the co-owners of the business.
It is highly recommended to put in place a buy/sell agreement to allow for the business to successfully continue operations in the event of the passing or incapacity of a co-owner.
Under a buy/sell agreement:
🧩 Insurance policies are taken out to cover the death or disablement of each co-owner; and
🧩 If a co-owner dies or becomes incapacitated, he/she is deemed to offer his/her stake for sale to the remaining co-owners and the proceeds of the relevant life insurance policy can be used to fund the purchase of that stake by the remaining co-owners.
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
Our Wills include a general power of adjustment that enables the executor to make adjustments to the allocations and entitlements under the Will.
Adjustments are allowed where the executor reasonably believes that making the adjustments will better reflect your intentions as to the proportionate distribution of both the estate assets and non-estate assets on an after-tax basis.
See our FAQ: What assets generally do not form part of the estate created by my Will? in relation to non-estate assets.
Please note: A general power of adjustment will not give the executor/trustee the power to add new beneficiaries who aren't already included in the Will.
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
The executors/trustees are responsible for:
✅ Applying for Grant of Probate (a Court Order allowing the Will to be administered);
✅ Notifying the beneficiaries of their entitlements;
✅ Gathering and distributing the assets in accordance with the Will;
✅ Ensuring that the testator's debts, taxes and funeral expenses are paid;
✅ Managing any assets that are held on trust for beneficiaries pursuant to the Will until those trusts vest; and
✅ Preparing the related accounts and tax returns.
An executor/trustee may be:
⚖️ An individual over 18 years of age;
⚖️ An appropriately licensed trustee company; or
⚖️ The Public Trustee.
It is not uncommon for a testator to appoint a trusted professional advisor to the role:
⚖️ A Solicitor, Accountant and/or Financial Planner.
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
The following definition of Digital Legacy has been extracted from the book * Digital Legacy Plan: A Guide to the Personal and Practical Elements of Your Digital Life …
A legacy is anything — material, emotional or digital — that leaves a lasting effect after we pass on.
Many think of this in terms of the material goods typically described in a last Will such as your house, your car, your jewelry, etc.
It's also familiar to think about the emotional legacy we leave in the people who survive us — children, friends, colleagues.
Your legacy is also reflected in your body of work, or the impact you have had on the world around you.
What will you be remembered for?
Digital Legacy is a modern extension of what we leave behind when we pass on.
🧩 Ease of business transition and succession;
🧩 Continuity of important or confidential client or corporate work;
🧩 Transfer of hard-earned social proof and follower trust;
🧩 Preservation of personal or professional reputation;
🧩 Protection of intellectual and creative property;
🧩 Strategy for online revenues or valued marketing and sales system.
🤔 You are empowered to determine for yourself your Digital Legacy;
🦜 Leave detailed instructions for the long-term care of your Pet/s;
🧬 Think of what you want to see in your Museum of Me; and
💡 Consider whether you want to leave behind something more meaningful than material goods such as an Ethical Will / Legacy Letter?
Resources:
➲ Free curated list of related websites + resources see our Digital Legacy ➲ Smartlist.
➲ Digital Legacy Plan: A Guide to the Personal and Practical Elements of Your Digital Life before You Die by Angela Crocker and Vicki McLeod [2019].
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
An Ethical Will (Hebrew: zava'ah) is a document that passes ethical values from one generation to the next.
Rabbis and Jewish laypeople have continued to write Ethical Wills during the nineteenth and twentieth centuries. (Riemer)
In recent years, the practice has been more widely used by the general public.
In BusinessWeek magazine and in an American Bar Association electronic newsletter it is described as an aid to Estate Planning; (Murphy; Friedman) in health care and hospice (Baines; Freed) and as a spiritual healing tool. (Weil; Freed).
Ethical Wills (also known as a Legacy Letter) are written by both men and women of every age, ethnicity, faith tradition, economic circumstance & educational level.
📘 The Measure of Our Success: A Letter to My Children and Yours by Marion Wright Edelman,
📘 Everything I Know: Basic Life Rules from a Jewish Mother, and
📘 President Barack Obama's Legacy Letter to his daughters of January 18, 2009.
The concept of the ancient traditional Ethical Will was to "transmit love, learning & ethical instructions to future generations".
The Ethical Will is a tool for spiritual healing in religious communities and in the care of seniors, the ailing and the dying.[2]
Estate and financial professionals use the Ethical Will to help clients articulate values to inform charitable and personal financial decisions + preparation of their last will and testament.
The Ethical Will is not a legal document.
Modern heirs may resist being "controlled from the grave" & more readily accept explicitly spiritual blessings from elders.
It could be a letter—ranging from half a page to a bound book—or a video recording.
There are no rules governing what goes into an Ethical Will / Legacy Letter, or when the contents should be shared with the heirs, but the idea behind it is simple: Convey values, not valuables.
Deeply rooted in western religions, the practice of writing Ethical Wills has re-emerged as a way of leaving behind something more meaningful than material goods.
Susan Turnbull, founder and principal of Personal Legacy Advisors, a firm that advocates non-binding personal-legacy documents as a component of estate and philanthropic planning says:
"What struck me was that it was the missing piece of estate planning …
A Will is written in formal legalese that is very limited in scope.
It has no personality, and there is no life or warmth in it.
Love and affection and gratitude may be implied by the document, but are never stated.
An Ethical Will takes a 30,000-foot view of your life, and tries to capture the essence of what has been important to you, and the lasting messages you want to leave.
The Ethical Will is written to help other people, for the benefit of the heirs, but the process the author goes through to create it is as valuable as the document itself.
The author has the opportunity to pause and reflect on her/his life in ways she/he might otherwise never do."
Linda Beerman, Chief Fiduciary & Risk Officer at Atlantic Trust, a private wealth-management firm, and manager of its wealth strategies group, says:
"Ethical Wills are an important part of helping prepare the next generation to become "good stewards" of the family wealth.
Typically these are private expressions of love, of what the owner of the wealth wants it to mean for the next generations.
It's an effort to pass down not just the money, but all of the drivers [of the] creator of the wealth, and what he or she wishes the legacy to be for the family.
The Ethical Will is a great way to tie it all together.
It answers the question: What is this all for?
With nearly every family there is a deeply emotional personal story behind the accumulation of the wealth."
🧩 Family history + Cultural & Spiritual Values;
🧩 Blessings & Expressions of Love for, Pride in, Hopes & Dreams for Children and Grandchildren;
🧩 Life-Lessons + Wisdom of Life Experience;
🧩 Requests for Forgiveness for Regretted Actions;
🧩 The Rationale for Philanthropic + Personal Financial Decisions;
🧩 Stories about Meaningful Objects for Heirs to Receive;
🧩 Clarification about and Personalisation of Advance Health Directives; and
🧩 Requests for Ways to be Remembered after Death.
Susan Turnbull, offers the following tips:
If you were not here tomorrow, what is the most important thing you would not want left unsaid?
It might be a simple as saying, "thank you" in your own words.
Write it down – you've begun.
You are not trying to write for the Pulitzer Prize.
What you create is a gift of yourself, made for those you love, not for an imaginary panel passing judgment on your life or your writing.
What do I want to make sure my loved ones know and have in writing?
What messages, feelings and information do I want to endure beyond my life?
Start small and add to it over time if you wish.
It's natural to expect that what seems most important to share might grow and change as you and your audience age.
The reach of your words is unknowable.
Keep it in an accessible file, so you can add to it effortlessly.
Keep it with your legal papers or refer to where it can be found.
Make sure your words find their intended audience.
Note: Using our Digital Safe Custody Vault will ensure you accomplish these objectives.
Even as you know you may augment or change your document over time, think of the rewards of creating a monologue that will promote dialogue.
Credits:
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
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