If you’re the eldest sibling in the family, or deemed to be the “most responsible”; if you’re seen to be a good friend by someone; or a fine upstanding citizen by others, chances are you will be asked to be an executor for someone’s will.

After you’ve enjoyed the warm feeling of being wanted, just pause for a moment and take stock of what it really means to assume this most important role.

You need to be aware that when the person dies, you will be required to spend a significant amount of time executing your responsibilities – and these can be onerous.

The actual functions will vary from one situation to another and, to some extent, depend on the surviving family members. However, the legally defined duties of the executor include:

• Arranging the funeral;
• Determining the assets and liabilities of the estate;
• Applying to the court for probate, if required;
• Determining what assets may need to be sold to pay outstanding debts – this may be defined in the will or by established legal definitions;
• Arranging the sale of all assets which are not to be directly transferred to the beneficiaries – including the home, investments, business interests and personal chattels;
• Lodging tax returns for the estate and the deceased;
• Paying the debts;
• Publishing a notice that you intend to distribute the remaining assets to the beneficiaries;
• Distributing the remaining assets to the beneficiaries according to the terms of the will.

For all this you may find yourself in the middle of family disputes and even subject to legal action from a dissatisfied beneficiary or creditor. If placed in this position, the executor needs to be able to manage their responsibilities as impartially as possible.

The executor can be held personally liable if a beneficiary suffers financial loss as a result of the executor’s actions or inaction, and in some instances, be legally liable for any losses incurred.

If, after considering all of this, you don’t think you can honour the person’s request and fulfill the executor’s role appropriately, it might be best to decline the offer.

If you’re feeling bad about not accepting, you could suggest your friend or relative engages a professional executor in the form of a Trustee Company or firm of solicitors. This will also ensure the executor outlives the person making the will.

For more information, contact us at Leenane Tempelton on 02 4926 2300 or email success@leenanetempleton.com.au

The post Responsibilities of an executor appeared first on Newcastle Financial Planners & Financial Advisors.

Basically, you can do whatever you like with your money while you’re alive. But what control do you have over your assets when you die? It’s an interesting thought that most people don’t like to dote on, however with more wealth being created through superannuation funds, it’s a thought that will require action at some stage – and the sooner the better.

It has been estimated that members of the baby boomer generation will pass about $600 billion to their children or grandchildren over the coming decades. This wealth will in some cases come in the form of family businesses moving to the next generation. In others, it might be more passive investments, such as shares, property and cash. 

Each of us might only have control over a small piece of this inheritance bonanza. Nonetheless, how much thought have you given to what it will mean to your beneficiaries and how they'll remember you? 

Preparing your legacy

The billionaire US investing guru, Warren Buffett, has some pretty clear views on the legacy he wishes to leave to his children. He has been quoted as saying that he wants to leave them enough money so that they will think they can do anything with their lives, but not so much that they can afford to do nothing.

The first step of course is to determine what assets you have that might form part of your financial legacy. Shares, property, superannuation and life insurance can be treated very differently under estate laws, so it's crucial to have this checked by your trusted advisers.

Next, you might want to think about the opportunities and values you want to leave to your beneficiaries. Do you want to "rule from the grave", or let them make their own decisions about how they tackle life's challenges?

Perhaps other bequests — to charities, for instance — will be your way of reflecting both personal gratitude and your preferred value system.

Who can help?

On the practical side, there are various professionals to help you to create your personal legacy. For example, enlisting a solicitor to draft your will and related documents is crucial. And we can advise you on superannuation and investment matters.

It might be a good idea to take time out to reflect on these important issues. Don’t wait until you’re sick or old to plan your legacy. Start now and plan to have the time of your life so you’ll have something memorable to leave behind!

Sources:
Musgrave, R. "Values based advice: How to create a living legacy", Australian Journal of Financial Planning (Volume 3, Number 1, 2008)
www.familymoneyvalues.com “What does family legacy mean to you?”

Call (02) 4926 2300 or email us. 
To discuss your financial future and that of your legacy, please do not hesitate to contact the team at Leenane Templeton. 

The post A legacy isn’t just about money appeared first on Newcastle Financial Planners & Financial Advisors.

“Isn’t estate planning all about looking after the assets of the wealthy when they die? What has estate planning got to do with being a single parent?”

Of course estate planning is about ensuring that there is an orderly transfer of assets between generations for the rich, but every person will leave something behind when they die, so estate planning is for everyone – rich or otherwise. The key aim of any estate plan is to ensure assets are transferred to support the right person(s), at the right time. And this is particularly relevant for single parents with young children. 

While the welfare of all children is a concern to parents, young children of single or widowed parents may be in a more vulnerable position for obvious reasons.

It’s not that difficult

Estate protection is not something the average single parent really wants to think about – or usually has time to do so – but there is good news. Making appropriate contingency plans need not be difficult or expensive – and the resulting peace of mind is worth the effort.

For such an important issue, it is best to seek appropriate professional advice. When seeking advice use the following questions as a starting point:

1. Is your will valid as a single parent? Is it appropriately expressed for the benefit of your children and up to date? Often people forget to update their will when personal circumstances change or they have no will at all. The results can be disastrous for your children.

2. Have you nominated an appropriate person(s) under the will to act as a guardian for your children? Is there a back-up option?

3. Who should be nominated as your personal legal representative (executor) of your will? The person selected should be someone who can competently and responsibly carry out your wishes. 

4. It may be wise to establish a testamentary trust under your will. That is, a protective trust that comes into existence upon death that provides financial support for your children until they complete their education.

5. Do you have enough life insurance so that the legal representative can clear any mortgage or other debts and provide for the living and education expenses of your children? Are the beneficiaries under your life policies appropriate?

6. Have your children (or perhaps the personal legal representative of your estate if a testamentary trust has been created and estate will be clear of debt) been included in any superannuation death benefit nomination?

7. Do all of your major assets have clear, current and unambiguous title? 

8. Should an enduring power of attorney be put in place nominating an appropriate person? This ensures that decisions can be made if you are incapable of looking after your financial affairs.

This list is not exhaustive nor will it be relevant to all situations, particularly where business ownership and other complicating factors come into play. However, it is a handy checklist for when you start talking to your adviser about these important issues.

Our financial planners are at hand to help with any questions you may have in relation to estate planning if you are a single parent. 
Call (02) 4926 2300 or email us. 

Estate planning for single parents needs to be taken seriously so let us help you! 

The post Estate planning for single parents appeared first on Newcastle Financial Planners & Financial Advisors.

Each year, large numbers of Australians die without a Will. As our lives become more complex, it is an oversight that can be as costly as it is heartbreaking.

None of us like to contemplate our own mortality but unfortunately the adage about death and taxes being life’s two certainties is absolutely spot on and it’s worth putting plans in place for what happens when we die.

Dying without a Will – known as dying ‘intestate’ – may not be a problem if you have few assets, have been married to the same person all your life and have no kids. In that situation everything you own passes to the surviving spouse.

But many of us have significantly more complicated lives.

Our high divorce rate means an ex, a new spouse or partner and even stepchildren can enter the inheritance scene. Our assets are also more complex, with superannuation often ranking as the second most valuable asset after the family home.

It all adds up to make having a formal Will more important than ever before.

Intestacy can leave a trail that leads to court

Essentially, a Will dictates who will receive each of your assets when you die. Without a Will in place, your estate will be divided up according to the laws that apply in your state or territory. While these statutory decision trees are set in stone, they are unlikely to be in line with your wishes.

This is especially the case if you have separated (though not formally divorced) from a former spouse, who could potentially inherit everything you own if you die intestate, leaving a new partner with nothing.

The bottom line is to speak to your financial planner and lawyer about arranging a valid Will. All the hard work invested in following a tailored financial plan could unravel in the blink of an eye if you die intestate. The reality is none of us know when we will pass away, so the merits of having a current Will apply equally to everyone.

Not every asset is covered by a Will

One of the benefits of discussing your estate plans with your financial planner is that they have a clear picture of your asset position.

This is important because not every asset you own forms part of your estate. Many people are surprised (and often just a little unnerved) for instance, to discover that it can be left to their fund trustee to decide who inherits their super.

There is a way to have a say in how your super is bequeathed, and it involves completing some paperwork called a ‘binding nomination’. This spells out to the fund trustee who you would like to inherit your super and any life insurance held through super.

Only certain people can inherit your super tax free – notably your spouse and dependent children, or a person with whom you share an interdependent relationship – such as two aged siblings sharing a home together.

Your financial planner can help you make important decisions about who inherits your super and guiding you through the possible tax pitfalls to ensure the best outcome for everyone involved.

The critical thing is to take action today. None of us know what lies around the corner. Once your estate plans are in place, be sure to review those plans annually or following any major change in your life or asset holdings.

Speak with your Leenane Templeton financial planner on 02 4926 2300 to discuss your estate plans.

Source: BT

The post Make sure your estate ends up in the right hands appeared first on Newcastle Financial Planners & Financial Advisors.

Estate planning can be a confronting and even upsetting activity, so it’s no wonder it’s something many people avoid.

However, an up-to-date will and succession plan is crucial for looking after your loved ones should you pass away. Making estate planning your new years resolution can be a great motivation for getting this unpleasant task out of the way.

If you do not already have one, you should appoint an executor. The executor will be responsible for assisting and paying for your funeral, and will generally oversee the administration and distribution of your estate assets.

Estate assets are owned by you directly and include items such as bank accounts, real property, personal possessions and shares. It will also include the payouts from any insurance policies in your name.

However, your will generally does not cover non-estate assets. Non-estate assets are those which are jointly owned, i.e. not owned by you directly. This includes your superannuation, assets of trusts that you have a share in and the payouts from insurance policies held by your superannuation fund.

In order to specifically account for your non-estate assets in estate planning there are additional actions you have to take, such as completing a death benefit nomination for your superannuation fund and adjusting the deeds of trusts.

Call (02) 4926 2300 or email us.

Our award winning and expert accountants and financial planners are available to discuss estate planning with you so contact Leenane Templeton in the New Year!

The post A resolution for 2015: Estate planning appeared first on Newcastle Financial Planners & Financial Advisors.

Figures from the Australian Bureau of Statistics showed that one in five families is a blended or stepfamily.

Today, the issue of passing assets to beneficiaries on death is becoming increasingly risky. As the numbers of blended and stepfamilies continues to rise it is important to ensure a Will reflects an individual’s wishes.

Due to this, families should consider incorporating a Mutual Will into their estate planning. Mutual Wills can be an effective tool in an estate plan for couples where one or both partners have children from pre-existing relationships.

They can provide a degree of certainty that the gifts in the Will pass to the intended beneficiaries after the death of one party.

A Mutual Will is a Will that includes a binding contract between two parties stating that:
1. Each party will leave their property to the mutually agreed beneficiaries
2. During their lifetime neither party will revoke or change their Will without the consent of the other party
3. After the death of one party the surviving party will not alter or revoke their Will to change the mutually agreed beneficiaries

If the surviving partner makes a new Will and departs from the original agreement, the effect of the contract means that the courts will impose a constructive trust over the property inherited by the survivor.

The new year is on the horizon. It may be a good opportunity for individuals who have not considered or adequately planned what would happen in the event that they were to pass away to take action.

Contact Leenane Templeton Wealth Management if you wish to discuss this matter further.

The post Wills and blended families appeared first on Newcastle Financial Planners & Financial Advisors.

1. Who should you appoint as your beneficiaries?

While you can leave your estate to pretty much anyone you like, you do need to be careful. Challenges against a Will often occur when people feel they haven’t been provided for fairly. If you think your Will is likely to be challenged, you may want to leave a letter of wishes. This is an additional document explaining why the Will has been drafted in the manner chosen and can be referred to when a claim is being defended.

2. What assets do you want your beneficiaries to receive?

While some people feel the need to specifically gift every asset they own, a lengthy list of gifts is usually not encouraged. Assets held at the time of making your Will (and their value) may differ significantly from the assets owned at the time of death. It can therefore be a good idea to only gift a small number of specific assets in your Will and assign a percentage of the remainder of the estate to each beneficiary.

3. Who should you appoint as your executor?

Your executor is responsible for a range of tasks, such as locating the Will, organising the funeral, arranging probate, collecting the assets, repaying debts and distributing the assets. When choosing your executor, make sure you select someone who is trustworthy, in tune with your objectives, and capable of performing this very important role.

While some people appoint a family member as their executor, a Trustee company can be a good alternative – particularly if your Estate is complicated and/or suitable friends or family are not available. A Trustee company provides expert administration and legal services and charges a fee, typically paid from your Estate, after your death.

4. Should you establish a testamentary trust?

A testamentary trust is a special type of trust that comes into effect upon your death, if you have included specific provisions in your Will. Because the Trustee owns and controls the assets, your estate can be protected from a number of potential risks and your beneficiaries can be provided for in a tax-effective manner.

Naturally everyone’s situation is different and we recommend you speak to one of our Financial Adviser's to find out more.

The post Tips for making an effective Will appeared first on Newcastle Financial Planners & Financial Advisors.

Speak with specialist investment advisor, Andrew Frith for strategies to ensure your assets within your will are “Court Proof”.  Visit a financial advisor today
For your financial planning and self managed super fund experts.

The post Are You Sure Your Will Is Court Proof? appeared first on Newcastle Financial Planners & Financial Advisors.