Greater Protection For This Brave New World!

The global epidemic we are all bravely facing has shown us just how important it is to ensure your family is protected and provided for in the unfortunate event of the death of a loved one 

With people losing their employment and lending institutions requiring more and more guarantees from their borrowers in order to secure finance, there is a greater need to ensure our assets are not diminished and are protected from creditors. 

It is important to consider if your circumstances have changed and if your will, power of attorney documents, company or trust structures (estate documents) are serviceable to your wants and needs. 

It is always recommended to review your estate documents every 3-5 years, however, within that time, if your circumstances do change your estate documents may not provide the most appropriate level of protection and may leave your estate exposed. 

Additionally, if you do not have any estate documents in place, it is vitally important to consider putting these in place to protect your loved ones and to ensure they are able to administer your estate as easily as possible during their difficult time. 

Below is a non-exhaustive list of matters to consider when reviewing your estate documents: 

  1. Who is your executor?
  2. Have you separated from your partner?
  3. Have you re-married or do you have a new spouse?
  4. Are you children still considered dependant upon you?
  5. Do you have life/death insurance and permanent disability insurance cover within your super?  Is the amount you are insured for enough?
  6. Have you in place a binding death benefit nomination for your life insurance and super?  Has the nomination lapsed or is the beneficiary an authorised person (spouse, child, financial dependant, estate)?
  7. Have you provided any specific assets of your estate to people under your will but that asset is no longer in your possession?
  8. Have you lost touch with a person who would currently benefit from your estate?
  9. Have you put enough protections in place for someone you are not providing for under your estate?
  10. Has anyone names within your will passed away?  What would happen to their share?  Has that been made clear within your will?
  11. Does your trust deed or company constitution provide provisions on what happens if you were to pass away?

If you are unsure on how to answer any of these questions or if you require a review of your estate it is recommended you have a discussion with one of our estate lawyers who will guide you on the best course of action.  

A bonus of Canny Group is that our team is able to provide you with a holistic service with our lawyers, accountants and financial advisors working together to provide you with the most efficient and effective advice. 

 

Katherine Taylor – Solicitor

BCriminology (History), LLB

HomeBuilder Grant

In June 2020, as part of its economic response to Coronavirus, the Australian Government announced its HomeBuilder Grant.  The purpose of which is to assist in the continuation of the construction industry through employment of trades and to maintain or increase the property market.

So, what is it all about?

The Grant provides eligible owner-occupiers with a grant of $25,000 to build a new home or to substantially renovate an existing home.  Owner-occupier refers to someone living in or intending to immediately live in a property as their main residence.

Here’s what you need to know if you are eligible…

LAND BUYERS / VACANT LAND / OFF-THE-PLAN BUILDS

The grant is available to owners who own land or are buying land and intend to build a home on the property as their main residence. Criteria each owner must meet:

  1. Be a natural person (ie not a company or trust)
  2. Be over 18 years old
  3. Are an Australian citizen
  4. The property is your main residence
  5. You are not an owner-builder
  6. You meet one of the following two income caps:
    1. INDIVIDUAL APPLICATION // no more than $125,000 per annum based on your 2018/19 taxable income OR
    2. COUPLE APPLICATION // no more than a combined value of $200,000 per annum based on your 2018/19 taxable income
  7. The building contract was signed between the 4th June 2020 and 31st December 2020
  8. Construction must begin within three months of the building contract signing date
  9. The builder cannot be a relative (must be an arm’s length transaction between unrelated parties)
  10. The property value (house and land) must not exceed $750,000

BONUS – this Grant is an additional monetary payment to the First Home Builders Grant for first home owners!

SUBSTANTIAL RENOVATIONS // Homeowners are eligible for the Grant if they enter into a building contract for works that will significantly improve their property but not for works that would be viewed as repairs to the home.  Criteria each owner must meet:

  1. Be a natural person (ie. not a company or trust)
  2. Be over 18 years old
  3. Are an Australian citizen
  4. The property is your main residence
  5. You are not an owner-builder
  6. You meet one of the following two income caps:
    1. INDIVIDUAL APPLICATION // no more than $125,000 per annum based on your 2018/19 taxable income OR
    2. COUPLE APPLICATION // no more than a combined value of $200,000 per annum based on your 2018/19 taxable income
  7. The building contract was signed between the 4th June 2020 and 31st December 2020
  8. Construction must begin within three months of the building contract signing date
  9. The builder cannot be a relative (must be an arm’s length transaction between unrelated parties)
  10. The contract price must be between $150,000 and $750,000
  11. The property value before the renovations must not exceed $1.5 million
  12. The works must be in connection with the dwelling (ie swimming pools, stand along garages and granny flats do not apply)

PROCESS + TIMING OF PAYMENT // Applications for the Grant are not yet available.  For new builds, the grant will be paid in line with the timing of payments for First Home Owner Grants, or at the discretion of their state and territory.

For substantial renovations, the grant will be paid once at least $150,000 of the contract price has been paid for the renovation.

ADDITIONAL CONSIDERATIONS // While all States and Territories have signed the National Partnership Agreement for the Grant to proceed, each State and Territory through their relative Revenue Office’s (or equivalent) will be setting their own guidelines and framework for applications and these may slightly alter the criteria above.

Please do not hesitate to contact our friendly legal team should you wish to discuss the Home Builder Grant further.

ADDITIONAL RESOURCES:

Watch this space – SRO – https://www.sro.vic.gov.au/owning-property/australian-homebuilder-grant

Australian Government – https://treasury.gov.au/coronavirus/homebuilder

 

Katherine Taylor – Solicitor

BCriminology (History), LLB

 

Estate Planning.. Not Just For The Wealthy!

Estate planning, or ‘life planning’ as we call it, isn’t just a tool for wealthy families.  Estate planning is useful for all of us, many of us accumulate a substantial estate reflecting a lifetime commitment to work.  It is our interest and our family’s that we don’t waste unnecessary money on tax or expose your hard-earned assets to potential risks and otherwise accommodate families to future conflicts and disputes.

Life planning covers your future estate, assets, and tax planning.  Generally, the easiest place to start is with your Will.  Your will is central to your estate plan, and there are mechanisms which can be included in your will to ensure that your family are all adequately provided for.

You can choose a simple Will or a testamentary discretionary trust, which is a special type of discretionary trust that is created by a person’s Will.  The Trust comes into existence after the will-maker dies.  Instead of passing the assets directly to the beneficiary, the executor transfers the assets into a discretionary trust to be held by a separate trustee for the benefit of the beneficiary (and a general class of beneficiaries).

There are a number of benefits that come with the creation of a testamentary discretionary trust, some of which include:

1. TAX PLANNING

An advantage of a testamentary discretionary trust is that the trustee of the trust can stream the income earned from the trust assets through to a class of beneficiaries in the most tax-effective way.  This usually includes immediate family members such as children.

2. ASSET PROTECTION

When a testamentary discretionary trust holds assets, your beneficiaries are protected from being at risk of personal liability such as from creditor claims, the application of bankruptcy or family law claims.  This is because the trustee has legal ownership and uses their discretion to distribute any income or capital to the beneficiaries and until they receive that share, they do not own the asset.

3. PROTECTION OF GOVERNMENT ENTITLEMENTS

Finally, if your beneficiary is receiving Centrelink entitlements now or in the future, trust structures can be used to preserve those entitlements, reflecting separate ownership.

All estate planning solutions need to be tailored to your personal circumstances.  For personalised estate planning advice and to organise an initial meeting with one of our legal team, please contact us.

 

Kayla Kennedy – Solicitor

LLB

2020 Tax Returns + 3 Ways To Make The Most Out Of It!

Did you know that the average Australian received a tax refund of $2,381?  That’s enough to splurge on some new furniture or an LED Smart TV, right?  Well, before you head down to your local shopping centre with your tax refund in hand, take a look at three ways we’ve come up with to spend your tax return.  We’re confident that the following strategies will help you make the most out of your tax return and create positive change in your life.

#1 SET UP AN EMERGENCY FUND

Research conducted in last year’s Financial Consciousness Index found that a concerning 13.4 million Australian’s do not have emergency savings to fall back on if there were unable to earn an income for more than three months.  The study also found that 7.5 million Australian’s struggle to pay their bills and are not saving money regularly.  With this is mind, why not use this year’s tax return to set up an emergency fund and make this the start of your savings plan.  Our team at Canny Advisory can help you with budgeting and saving to ensure that you have the right financial plan in place to set yourself up for success.

TIP // speak to one of our Financial Planners or Advisers to find out the easiest way to make this happen without even noticing!

#2 MEET WITH AN ESTATE PLANNING LAWYER

As the saving goes, there are only two certainties in life; death and taxes.  Unfortunately, more than half of Australian adults do not have a will.  So, with this year’s tax return, why not protect your loved ones and sit down with an estate planning lawyer to draw up a will or testamentary trust.  Our team at Canny Legal can help you with your estate planning needs, including wills, enduring powers of attorney and medical power of attorney.  Getting this sorted can be the final way you say ‘I love you’ to the people you love the most.

TIP // check out www.cannygroup.com.au/wills to complete your Will in the comfort of your own home, without having to leave your couch!

#3 STARTING YOUR SIDE HUSTLE

If you have an idea of starting a side business, use this year’s tax return to kick-start this once and for all.  it doesn’t take much more than $2,381 to get started these days: a basic website and some Facebook or Instagram ads to attract your first paying customers.  Why not make this the start of your side hustle and see if you can generate a return on investment and get your business off the ground.  It’s also worth keeping in mind that our team at Canny Accounting can help you to take your side hustle to the next level.  We will ensure that you’re equipped with the knowledge to manage your side hustle the right way and take advantage of opportunities as they present themselves.

TIP // speak to one of our team to ask them about booking your ticket to our FREE Side Hustle webinar to help you get started the right way!

So, how will you spend your tax return this year?

 

Chris Graham – Client Services

Contracts Can Be Cruel!

You found the perfect property, the vendor and their agent have been amazing, friendly, flexible and have been open to all of your requests through the negotiation stage.  Sounds to good to be true?  It might just be!

If you’re thinking about purchasing a property, do not take the word of the vendor or their agent.  The details of any negotiations are in the pages of the contract.  As stated by Ronald Regal – “trust, but verify”.

Conveyancing has gone through significant changes over the past 5-10 years.  Processes and legislation have modified and, subsequently, so to has the contract of sale.  Gone are the days of fairness and equality in a contract, with contracts now re-written to solely protect the vendor leaving the contract reflecting a ‘no vendor liability’ or ‘take it or leave it’ status.  Further, as the property market expands and there is more interest surrounding a property, you may feel pressured to sign on the dotted line without first obtaining advice.

A contract reflects the negotiations between you and the vendor.  A standard clause now placed in contracts is that the contract is the entire agreement and you will not be able to rely on any promises, assurances or agreements made by the vendor or their agent unless that are inserted into the contract.  It is, therefore, very important that all negotiations with the vendor are disclosed and inserted into the contract.

It is also important for the contract to be reviewed so you are aware of your obligations.  The worst contracts will see you not being able to make any claims against the vendor for damage caused by the vendor or for their failures to comply with building regulations or contamination of the land.  Further, the penalties applied for delayed settlements, delayed paperwork and requests for finance approval extensions can make for a very expensive exercise.

A further catch is when an agent asks for you to sign the contract as a way to secure your offer to the vendor, but, you have not yet had the contract reviewed and amendments may be required.  The agent may then provide this to the vendor and, if accepted, the contract becomes binding.

Amendments to the contract are part of the negotiations and should be completed prior to your signing any contract.  You may be able to reply on the 3-day cooling off period, but, it is best to speak with our office in this regard.

If you need any advice in relation to your purchase or potential purchase, please get in touch with us and we would be happy to assist you!

 

Katherine Taylor – Solicitor

BCriminology (History), LLB

[Sub]Divide + Conquer

The subdivision and development of your land is an excellent way to make a profit on the assets you currently have. As always, there a few matters that need to be considered prior to diving into this potentially lengthy process.

SO… Is your land suitable?

Your ability to subdivide and develop your land depends largely on whether the property is suitable in terms of size, location and zoning.

When your Council is considering a subdivision application they will examine the size of the land, if the property is subject to zoning or planning overlays that may restrict or prohibit subdivisions, and will compare these with their development strategy for the area. They may impose conditions if the subdivision would affect natural resources, environmental areas and biodiversity, land use, heritage and infrastructure. They may refuse the application if it is not within their development strategy. As a first step, speaking with Council will give you an idea of their requirements and if the property is suitable.

WHO PREPARES THE APPLICATION + how is the plan of subdivision created?

As well as speaking with Council, we recommended you also speak with a land surveyor. The role of a surveyor is to dive deeper into the property’s suitability. They will examine the property, determine is suitability, assess the most appropriate way to subdivide the land, create a new plan of subdivision, work with Council and external sub-contractors to ensure all conditions are satisfied to obtain the statement of compliance from Council and to submit the subdivision application to our office for registration.

WHAT’S NEXT… Once the Council have given the tick of approval?

Once all the conditions of the subdivision are satisfied and Council have provided their statement of compliance, we [ie. your legal team] will attend to the registration of the plan of subdivision. As part of this application, we lodge a summary form to the Titles office with copies of the plan of subdivision documents. We will also obtain the lender’s consent to the subdivision if there is an existing mortgage over the property.

WHAT HAPPENS… once the plan of subdivision has registered?

Once the subdivision has registered, new certificates of titles will be issued for the new pieces of land. If there is any common property in the new plan of subdivision [such as a common driveway] an owner’s corporation [as known as a body corporate] will be established and they will own that particular piece of land. You will also need to consider the management and maintenance of that common area.

HOW LONG… will the subdivision process take?

The time frame for the development and subdivision of the land will vary depending on the work to be completed on the property, including whether or not buildings will be constructed.  However, you can generally expect that a subdivision process can take between 12-18 months to finalise from start to finish.

WHAT ELSE… might you need to consider?

  • HOME DESIGN if you intend to construct houses on the subdivided land as part of the development we recommend speaking with a builder and/or architect to discuss potential home designs. The proposed plan of subdivision may limit your design options.
  • FINANCE: the subdivision of land can be a costly exercise. It is a good idea to enquire into the costs involved in the development and discuss these with your accountant, broker/lender and a financial advisor.

Below is a summary of the costs you can expect to pay for a 2-lot subdivision:

Council Fees $3,000
Council Levies $15,000
Surveyor Fees $10,000
External Subcontractors $40,000
Builders/Architects $600,000

(based on construction of two homes valued at $300,000 each)

Legal Fees $1,200 – $2,000
TOTAL ESTIMATE $669,200.00

*The above is an estimate only. The final cost is dependent upon the property, the development and the costs set by Council, the surveyor and the external contractors.

  • STRUCTURE OF OWNERSHIP: If you are entering into a subdivision project with others, you should also consider how you should own the property [ie. personally or within a trust/company structure], and how contributions, expenses and distributions are managed. Our legal and accounting teams can advise on this based on your individual plans and circumstances.
  • SALE OF SUBDIVIDED PROPERTY: If you intend to sell the developed land, you will need to further consider your Capital Gains Tax [CGT] and Goods and Services Tax [GST] obligations. We recommend speaking with your accountant in this regard.

If you are interested in learning more, please do not hesitate to contact one of our friendly property lawyers.

 

Katherine Taylor – Solicitor

BCriminology (History), LLB

Young Money – Estate Planning For Millennials

We understand life is busy, whether you are studying full-time, travelling the world or thriving in your career.  Like most of us, the last thing on many young peoples’ minds are what will happen to their assets if they were to pass away suddenly.

And what assets do young people have to be worried about?  Aside from personal items, many will be thinking that all they have is some money in the bank, personal items, and maybe, a first home with minimal equity. However, many don’t consider their superannuation fund as a personal asset worth worrying about, but we all should.

Superannuation is one of those assets that many people just set and forget.  Your superannuation can be your most valuable asset, particularly as a young person, when, although the balance of actual super you have accrued is minimal, the automatic life insurance attaching to many retail and industry superannuation funds may be worth hundreds of thousands of dollars.  This will form part of your ‘superannuation death benefit’ should you pass away.

Most superannuation funds allow their members to nominate who will receive their death benefit [accumulated super and life insurance] upon their death.  What is often not communicated by the super fund, is that superannuation law only allows a limited category of persons to benefit from your superannuation fund.  Those people are a spouse or de facto partner, children or your estate [distributed by your will].

So, what happens if you don’t have a partner or children?  Well by putting in place a simple Will, you can nominate your estate by completing a death benefit nomination, and by your will you can then distribute this significant asset to third parties [for example, to parents, siblings, friends or charities].

We also know that whilst you may know and understand that you need a will, you just don’t have the time [or inclination] for multiple appointments with a lawyer during business hours to get it done.  We like doing things differently here and have recently developed an online Will service to provide a reliable and accurate will for those with straightforward circumstances who want to prepare a will on their terms.  Our Off The Rack will option is fully autonomous and can be completed anytime and anywhere [ie. on your couch in trackies at 9pm with a glass of wine in-hand] and your document is delivered to your inbox within one business day.  We also have our Tailored will option which combines online preparation with a short appointment with our lawyers to finalise and sign it, and of course, should you want the piece of mind of a fully custom will with detailed advice, our Bespoke will option is also available.

Visit https://www.cannygroup.com.au/wills/ to find out more or to get your will started, and if you’re not sure which option is right for you, complete the short questionnaire to point you in the right direction.

Powers of Attorney are another vital element of estate planning that are generally overlooked by young people. Download our free Seven Essentials of Estate Planning Guide, or look out for a future bulletin to learn more.

 

Kayla Kennedy – Solicitor

LLB

Superannuation Nominations – Make It Legit!

Don’t be trapped by the pitfalls of superannuation nominations – make it legit!

Have your circumstances changed recently?  Have you married, separated, divorced, had kids, or are your kids now over 18 years old?  It may be time to consider and/or review your superannuation nomination.

A superannuation nomination is a notice to your superfund trustee outlining who you want to receive your superannuation benefits after your death.  However, your superfund trustee is only bound by a nomination that is valid [in accordance with superannuation laws].

Many superannuation funds will not guide you through what constitutes a valid superannuation nomination, which makes it all the more difficult.

So, what constitutes a valid superannuation nomination? Your superfund trustee will look at the following hierarchy of people when considering how to distribute your super:

  1. Your spouse or ex-spouse;
  2. Your children [or other financial dependents]; and
  3. Your Estate.

Let’s break these categories down a bit further…

1. YOUR SPOUSE OR EX-SPOUSE

It may seem common sense that a superfund trustee would pay your super benefits to your partner automatically.  And this is true, particularly if you have made a nomination directing the payment to your spouse.  However, if, since making the nomination, you have separated or divorced from your spouse, the nomination is not revoked and, in fact, remains valid. Thus, your benefits may be paid to an ex!

2. YOUR CHILDREN

The intention of superannuation is to fund the retirement of you and your dependents.  Accordingly, a spouse and children who are considered to be financially dependent upon you will receive the most beneficial treatment under superannuation law.  Your children who are under 25 or have a disability will be considered dependents.

You must be careful with nominations to children as there can be pitfalls, including:

  1. You cannot nominate nieces or nephews [invalid];
  2. If the children are under 25 and you have a spouse or an ex-spouse who is alive, that person will be considered the guardians and your super will be paid to them [to hold upon trust for your children until they attain the age of 18];
  3. Children who are over 25 are determined as not being financially dependent upon you, and if the super benefit is paid to them then they will be heavily taxed upon receiving the death benefit.
  4. The taxation consequences can be different for children depending on their ages at the time of your death, which will create an uneven division in real [net] terms;
  5. As long as your children are over the age of 18 years, the superannuation fund will pay an entitlement directly to nominated children, meaning you cannot protect that benefit for your children until they attain an older age.

If you intend for your super benefits to benefit your children, and any of the above issues are in concern in your current circumstances, one solution may be to nominate your Estate as the beneficiary [provided you have an up-to-date Will].  Your Will then controls the distribution of the super death benefits to your chosen beneficiaries and much can be done to reduce or avoid the tax consequences described above!

3. YOUR ESTATE

As mentioned, nominating your Estate is a great way to cover most pitfalls of superfund nominations.  Tax can be avoided or reduced where you have children under and over the age of 25, you can implement asset protection strategies for your personal and superannuation assets for your children, and you can distribute your super death benefits to third parties [who aren’t your spouse or child] through your Will.

The potential consequences of this option are that this can create a further delay between your date of death and the distribution of the superannuation death benefits, and it also has the effect of increasing the value of your estate.  If your Will is challenged after your passing, the superannuation benefits will form part of the asset pool which can be claimed against.  Some food for thought regarding the significant asset that is your superannuation.

So, maybe it’s time to review your superannuation nomination – and for the greatest benefit, we suggest reviewing it concurrently with your Will and Powers of Attorney.

Contact our Legal Team for an appointment to review your Estate Planning to find out how we can help.

 

Katherine Taylor – Solicitor

BCriminology [History], LLB

Buy Low Sell High

Buy Low Sell High is the first seminar in our free Property Seminar Series.

Buy Low Sell High is designed to provide an overview of the sale process, from engaging a real estate agent right through to handing the keys to the purchase.

We delve into:

  • WHO // you will need to engage to sell + why
  • WHAT // who does what, from the agent to the stylist right through to the broker + lender
  • CONVEYANCING // the general conveyancing process
  • SETTLEMENT DAY // what to expect + what happens if there is a delay
  • TRAPS + PITFALLS // that you should be wary of when consider to sell your property

So when the time is right to move on to your next dream home, selling your property for the best price will be a breeze!

Secure your FREE ticket through Eventbrite here.. https://www.eventbrite.com.au/e/buy-low-sell-high-tickets-75801936633

REFRESHMENTS INCLUDED + ALL CHILDREN WELCOME!

New Labour Hire Laws In Victoria

ATTENTION ALL BUSINESSES.. does your business or organisation use labour hire workers?  If this applied to you, then you need to be aware of the new labour hire laws that are now in place, and how they may affect you and your business!

 

Under the Labour Hire Licensing Act 2018, labour hire providers will have until 29 October 2019 to apply for and be granted a licence by the Victoria Labour Hire Authority to operate in Victoria.

Licences can be applied for from the Labour Hire Authority website.  These licences are valid for a period of no more than three years.

There is a test that needs to be satisfied to obtain and maintain a licence.  This is known as “fit and proper test”.  Businesses will need to prove past compliance with the applicable employment, tax, immigration and workplace health and safety laws.

To ensure compliance of the new licensing system, the Victoria Labour Hire Authority will employ inspectors.  These inspectors will be able to enter and search premises, examine, seize or inspect anything suspected of relating to a possible contravention.

KEY POINTS FOR BUSINESS OWNERS:

  • LABOUR HIRE PROVIDERS MUST REGISTER ONLINE TO CREATE AN ACCOUNT + then apply for a licence.
  • LABOUR HIRE PROVIDERS WILL HAVE SIX MONTHS, or until 29 October 2019 to register online + apply for a licence.
  • IF PROVIDERS DO NOT APPLY FOR A LICENCE within the six-month transition period, they will be prohibited from providing labour hire services from 30 October 2019
  • UNLICENSED LABOUR HIRE PROVIDERS CAN FACE SUBSTANTIAL FINES, with a maximum penalty for a natural person being more than $120,000 + for a corporation exceeding $500,000.
  • HOSTS [BUSINESS WHO UTILISE LABOUR HIRE WITHIN THEIR BUSINESS] who enter into an arrangement after 29 October 2019 with a labour hire provider who has not applied for, or who has been refused a labour hire licence face substantial fines ranging from a maximum in excess of $120,00 for a natural person to in excess of $500,000 for a corporation.
  • THERE IS AN APPLICATION FEE, + ANNUAL LICENCE FEE, payable by the labour hire provider.

If your business uses labour hire workers in Victoria, we recommend you begin enquiringly with the providers as to their intentions with respect to applying for a licence.

Please contact Canny Legal on 5278 9500 if you have any queries regarding the new Labour Hire regime.

Spring Clean Your Life Planning

Spring has sprung, the days are getting longer and the sun is getting warmer – if you haven’t already, you are likely getting out in the garden, cleaning the house, and planning your summer projects around your home and garden.

In all the excitement of improving your physical environment, spare a thought for your life planning; that is, your future estate, asset and tax planning – it is a great time of year to give these a freshen up too!

Your Will is an easy place to start.  We recommend that a review of your existing Wills should be undertaken every 5 years, or earlier, if your current circumstances change.  If you don’t have a Will, NOW is the perfect time to get that process started.

Aside from regular reviews, there are certain milestones which are ideal point to consider and update your Will.  If any of the following have occurred in the last 12 months, or are likely to occur in the next 12 months, a review is necessary:

  • ENTERING A NEW RELATIONSHIP
  • MARRIAGE
  • CHILDREN
  • PURCHASING OR SELLING PROPERTY
  • CHILDREN BECOMING ADULTS
  • RETIREMENT
  • ESTABLISHING A BUSINESS
  • BUSINESS OR TRUST CHANGES
  • RELATIONSHIP BREAKDOWN, SUCH AS SEPARATION OR DIVORCE

If any of the above scenarios have recently changed in your life, it would be a good idea to grab copies of your signed Will, have a sit down and read over what you have in place.  If you see anything which requires change, or you are unsure about the impact of a life event, come see our legal team and we will assist you with the review.

Another issue worth noting is how marriage, separation and divorce can affect your Will if you fail to update it.  Each has a different consequence, and failing to consider and update your Will and Powers of Attorney at the time can result in the wrong people being in control of, and entitled to, your hard-earned assets.

The key to good long-term life planning is to be prepared, and obtain advice before committing to a significant life, asset or business change [where possible].  This isn’t limited to Wills, as changes can also impact Powers of Attorney, ownership of assets [ie. if owned jointly with others], business structures and agreements and superannuation entitlements.

Contact our Legal Team today to get your Life Planning spring clean underway.

 

Kayla Kennedy – Solicitor

LLB

Estate Planning

I’ve often thought that ‘life planning’ would be a much more appropriate label than ‘estate planning’; estate planning is [and should be] so much more than simply planning for your death.

Of course, planning for how your assets should be dealt with upon your death by preparing a Will is an important component of the plan, but it only one component of what should be much broader life planning – and that planning should begin as early as possible.

Estate planning extends well beyond Wills, to incorporate Powers of Attorney, Superannuation, business ownership, trust structures, tax planning and broader family arrangements, all of which may have no effect until you are unwell or pass away, but should all be part of your planning whilst you are fit and well and enjoying life.

Your estate planning should be front of mind during many of life’s big moments, including the following:

  • PURCHASING A PROPERTY // planning should include how the property is owned, whether that is in your sole name, joint names with another person, or in the name of a company or trust. Getting this right will determine who can receive an interest in the property should you pass away, and can also avoid unnecessary stamp duty, tax and legal expenses in transferring the property down the track;
  • GETTING MARRIED OR SEPARATING FROM YOUR SPOUSE PARTNER // the joy of getting married, or the difficulty of a relationship breakdown, both have an impact on your estate planning. Prior to the event, you should be reviewing any existing wills, powers of attorney, superannuation arrangements, business ownership structures and the ownership of your own assets;
  • HAVING CHILDREN, OR YOUR CHILDREN BECOMING YOUNG ADULTS // your children are the centre of your world, and should also be the centre of your estate plan, whether that is to provide for the care and provision of your minor children, or to benefit and protect your adult children for the challenges in their own lives;
  • STARTING A BUSINESS, OR PLANNING YOUR TRANSITION OUT OF A BUSINESS // both extremely exciting times, and both requiring significant planning to ensure smooth operation of the business and treatment of key people within it.

For bonus points, great estate/life planning will combine elements of legal advice and documents, financial advice and accounting advice, which is addressed in a cohesive, open and organised manner.

 

For further information regarding estate planning, please contact us to receive a FREE copy of our ‘7 Steps to Estate Planning Guide’, and look out for future dates for our ‘Estate of Mind’ seminar series at https://www.eventbrite.com.au/e/estate-of-mind-tickets-66157682409

 

Stefan Manche – Senior Associate Solicitor

LLB, BComm