Estate Planning & Wealth Management

The Estate Planning & Wealth Management team members include:

Partners – Stephen Gray;

Consultant – Ian Marr, Michael Hayne;

It is essential that each individual has a Will and Enduring Power of Attorney. The Enduring Power of Attorney would enable the person who is granted the attorney to administer the financial and/or health requirements of the donor in the event of the donor being unable to make decisions for himself as a result of an accident or illness, including a mental illness. Companies with either one or two directors should grant an attorney in the event of the director being unable to make a decision in similar circumstances or for example, in the event that they are overseas.

In addition, everyone should ensure that their business plan includes appropriate thought and documentation in relation to their wealth creation and estate planning.

If you are involved in a shareholding of a business then the appropriate shareholders or partnership agreement should be put in place with a provision for a first right of refusal in the event of a partner wishing to exit the business or in the event of the death of one of the partners or shareholders.

Wills themselves need to be considered extremely carefully, particularly the appointment of the Executor/Trustee. If there are trusts involved in the Will the Trustee needs to have business experience or be conversant with the deceased’s affairs. The appointment of a spouse may not, in itself be sufficient, as at such a difficult time, the spouse maybe unable to cope, or indeed, may need assistance to make the correct decisions regarding the assets of the estate, for example for the sale of property, the sale of interests in businesses or the sale of shares in public companies. Particularly in volatile times such decisions and timing are critical.

Also capital gains tax implications need to be carefully considered at the time of death and the transfer of assets.

When making a Will it is important to ensure that you have considered your superannuation entitlements. The superannuation entitlements may not necessarily be dealt with in the Will, as the Trustee of the superannuation fund may have discretion as to whom to pay benefits in the event of the death of the superannuant (if, in fact the beneficiary is not listed on the policy).

Consideration should be made as to whether it is appropriate to include in the Will a Testamentary Trust which would enable the assets to be administered after the date of death by the Trustees in their current state without being sold in order to pay the income to the beneficiaries. The tax implications and savings which may result from such a trust need to be considered by your accountant.

Special consideration should be made for individuals as beneficiaries who may not be able to deal with assets or money as a result of a mental or other incapacity. Quite often it is advised that those individuals receive an income during their lifetime from the share of capital which has been set aside for them under a Will. The ultimate recipient of that capital needs to be considered.

In relation to Wealth Management we suggest that it is appropriate to ensure that your structure minimises taxation, and to obtain the benefits of capital gains you should be advised by your accountants and your solicitors. Discretionary trusts, company, partnerships and other vehicles should be explained and discussed.