Making your Will
Making a Will
Making a Will is the only way to be certain that a lifetime's work is passed on to the people you choose. It means security for those you love and those for whom you are responsible. Secure your children's future If your children are under the age of 18, you may choose to name guardians for them and make arrangements for their maintenance and education. Second marriage If you are currently in your second or subsequent marriage you must have a current Will to protect the members of your new family.
It's not commonly known that the new marriage will automatically cancel all previous Wills.
Defacto relationships
If you die without a current Will your partner could stand to lose assets and treasured memento's that are rightfully theirs. It is a fact of law that a de facto does not have any automatic entitlements. Early distribution of your estate
A professionally drawn and executed Will greatly assists the cost efficient administration of your estate and the early distribution of your assets. Most lengthy delays and court cases over Wills occur because the Will was drawn up without professional advice.
You decide who benefits
If you die intestate,that is without leaving a Will your estate is divided accordingto the law. This means that you will have no say in how your assets are distributed. You choose the executor
When you make a Will, you appoint an executor whose job it is to look after your estate and distribute your assets according to the instructions contained in your Will. Most people choose a relative, but due to potential mistrust or family bias, this is not always the best course of action to take.
"If my partner is a de facto spouse,
how long do we have to live together before he or she can inherit?"
De facto spouses have no automatic entitlements under intestate law to a deceased estate. They have to make a claim under the Inheritance Act
*note a couple living together for two years are now considered a permanent couple.
Information sheet on Defacto Couples
What does an executor have to do?
Even in the most simple cases, executors can be required to provide the following services themselves, or by arranging for them to be completed by the relevant professionals. Seriously consider whether you should entrust these tasks to a family member or friend, who may not have either the time or the expertise to perform the following tasks.
Notify beneficiaries
When a person dies, the executor locates the Will and immediately contacts theBeneficiaries and any relevant business associates.
Look after the estate
It is important to make sure that all assets are safeand arrange insurance protection when needed.If the deceased has left property or investments that need managing, it is the executor's job to arrange for them to be looked after.
The immediate needs of the family must also be assessed and steps taken to ensure they do not suffer any unnecessary financial hardship.
Value the estate
The Executor must identify all assets and liabilities.
Each item is then checked to see if it is correct by obtaining written confirmation from banks, financial institutions, insurance companies, share registers, titles offices, creditors etc.
Each asset must then be valued by obtaining sworn valuations, writing to relevant institutions, looking up stock market prices or any other appropriate means.
Obtain authority to administer the estate Before an estate can be administered, the executor must apply to the Supreme Court for the right to deal with the deceased's estate.
Complete income tax returns'
Before an estate can be distributed, it is necessary to obtain a clearance from the Australian Taxation Office. This means that the executor will have to give details or an income earned during the current financial year and past years, if the deceased has failed to lodge a return. In many cases the calculation of Capital Gains Tax is involved.
Pay all debts
Creditors, funeral expenses, income tax, fees for administering the estate and out of pocket expenses must all be paid. This often requires the executor to sell some assets. Beneficiaries may choose to provide funds to cover these expenses so as to keep the assets intact.
Divide the estate
When all debts have been paid, the executor is then free to distribute the remaining assets according to the directions laid down in the Will.
Establish trusts
Executors are responsible for setting up trusts for beneficiaries. Trusts are required if the beneficiary is under 18 years of age or mentally incapable, or if there are specific instructions in the Will. Such trusts need ongoing administration, often over many years.
Peter J Jackson, Funeral Directors
Making a Will is the only way to be certain that a lifetime's work is passed on to the people you choose. It means security for those you love and those for whom you are responsible. Secure your children's future If your children are under the age of 18, you may choose to name guardians for them and make arrangements for their maintenance and education. Second marriage If you are currently in your second or subsequent marriage you must have a current Will to protect the members of your new family.
It's not commonly known that the new marriage will automatically cancel all previous Wills.
Defacto relationships
If you die without a current Will your partner could stand to lose assets and treasured memento's that are rightfully theirs. It is a fact of law that a de facto does not have any automatic entitlements. Early distribution of your estate
A professionally drawn and executed Will greatly assists the cost efficient administration of your estate and the early distribution of your assets. Most lengthy delays and court cases over Wills occur because the Will was drawn up without professional advice.
You decide who benefits
If you die intestate,that is without leaving a Will your estate is divided accordingto the law. This means that you will have no say in how your assets are distributed. You choose the executor
When you make a Will, you appoint an executor whose job it is to look after your estate and distribute your assets according to the instructions contained in your Will. Most people choose a relative, but due to potential mistrust or family bias, this is not always the best course of action to take.
"If my partner is a de facto spouse,
how long do we have to live together before he or she can inherit?"
De facto spouses have no automatic entitlements under intestate law to a deceased estate. They have to make a claim under the Inheritance Act
*note a couple living together for two years are now considered a permanent couple.
Information sheet on Defacto Couples
What does an executor have to do?
Even in the most simple cases, executors can be required to provide the following services themselves, or by arranging for them to be completed by the relevant professionals. Seriously consider whether you should entrust these tasks to a family member or friend, who may not have either the time or the expertise to perform the following tasks.
Notify beneficiaries
When a person dies, the executor locates the Will and immediately contacts theBeneficiaries and any relevant business associates.
Look after the estate
It is important to make sure that all assets are safeand arrange insurance protection when needed.If the deceased has left property or investments that need managing, it is the executor's job to arrange for them to be looked after.
The immediate needs of the family must also be assessed and steps taken to ensure they do not suffer any unnecessary financial hardship.
Value the estate
The Executor must identify all assets and liabilities.
Each item is then checked to see if it is correct by obtaining written confirmation from banks, financial institutions, insurance companies, share registers, titles offices, creditors etc.
Each asset must then be valued by obtaining sworn valuations, writing to relevant institutions, looking up stock market prices or any other appropriate means.
Obtain authority to administer the estate Before an estate can be administered, the executor must apply to the Supreme Court for the right to deal with the deceased's estate.
Complete income tax returns'
Before an estate can be distributed, it is necessary to obtain a clearance from the Australian Taxation Office. This means that the executor will have to give details or an income earned during the current financial year and past years, if the deceased has failed to lodge a return. In many cases the calculation of Capital Gains Tax is involved.
Pay all debts
Creditors, funeral expenses, income tax, fees for administering the estate and out of pocket expenses must all be paid. This often requires the executor to sell some assets. Beneficiaries may choose to provide funds to cover these expenses so as to keep the assets intact.
Divide the estate
When all debts have been paid, the executor is then free to distribute the remaining assets according to the directions laid down in the Will.
Establish trusts
Executors are responsible for setting up trusts for beneficiaries. Trusts are required if the beneficiary is under 18 years of age or mentally incapable, or if there are specific instructions in the Will. Such trusts need ongoing administration, often over many years.
Peter J Jackson, Funeral Directors
posted by Jacqui at Sunday, March 13, 2005
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