News: Introduction to Wills

Southern Cross Financial Planning is your key to Everything Financial with our network of financial and legal professionals and we are pleased to announce that Geoffrey Morgan-Smith from GMS Legal will be contributing information on estate planning on a regular basis.

Introduction to Wills

Every responsible Australian over the age of 18 is advised to think seriously about making a Will because we cannot predict when we will die.

What is a Will?

A Will is a legal document that describes how your belongings and assets, (including your property, money, investments, jewellery, etc.) are to be distributed after your death. A Will can be altered if your situation changes or you simply change your mind about the distribution of your estate.

The importance of a professionally drafted Will

It is not something that most people like to think about or make provision for, but making a statement about what you want to have happen with your estate and who is to receive your possessions when you die is something that each of us must address at least twice during our lives.

Australian Motor Racing ledged, Peter Brock, earned a place in Australian history for his skill and courage as a driver. He earned a place in Australian legal history due to his untimely death and the confusion around the three wills that where purporting to be his last and final will (2 of which were from a DIY will kit). Apart from the cost of the lengthy legal challenges it is more than likely that his estate would not have been distributed as to his wishes.

More than just directing where or to who the assets of the estate go to a will also takes into account all factors that could affect the estate such as:

* Taxation
* Handicapped children
* Children from previous marriages
* Beneficiaries that have become bankrupt
* Beneficiaries under 18 years of age

A will also appoints the executor to the estate and any professional advisers that will assist in the winding up of the estate.

When do I review or update my will?

I often talk with clients who have moved home or who have had a life changing event occur but who have not made changes to their will to reflect the changes that have occurred. If you have had one of these situations happen to you since last making your will, it is important that you update it now.

* a birth in the family,
* the passing of a family member,
* a marriage in the family,
* a marriage break up in the family,
* a move to a new home or retirement living,
* the passing of the executor of your will,
* the purchase or sale of a significant asset such as an investment property, jewelry, etc,
* the inheritance or receipt of money, or
* a change in either your, a family member or an executor's health.

Regardless of any of the above changes you should review your will at least every 2 years. A simple review could be just to read the will to make sure it still reflects the assets you own and your wishes for their distribution.

Geoffrey Morgan-Smith
GMS Legal
38 Canton Beach Road
Toukley
Ph: 02 4397 2233