Make a will

I'm single, no children. My will has a list of small bequests to friends, then half the residue to various charities, the other half to be split into equal parts: three parts to each sibling, two to each nephew and niece who survives me by 14 days. Hopefully unambiguous.

 

Semi retired lawyer, and came to our house which was great

 

If you fully understand your Will then it hasn't been drafted properly.

A joke a lawyer told me.

 

You can leave your assets to anyone you want. But wouldn't it be better to try to help them out by saving tax and giving them some asset protection.
What if you leave it all to a charity but spell the name wrong or leave it to an entity that doesn't exist. It would have to go to court, tens of thousands could be lost on legal fees, even if uncontested.
What if you leave it to your mate who dies before you. What if they are a non-resident when you die. What if you leave assets that you don't actually own. etc.

 

Mine cost $500..fairly cheap.

But I had a solicitor who specializes in this area sit down with me to explain some really important things to consider besides just discussing who the beneficiaries would be.
Things like:
- choosing an appropriate executor
- who can and can’t contest the will
- enduring power of attorney
- enduring power of guardianship
- super

I don’t see how you could do all this with a DYI will kit. You also need signatures from your executor, power of attorney and power of guardianship. I’ve seen occasions where people just assign them without telling the other party and then that person is not suitable or willing to do the role.

 

No need for an executor to sign anything before the death.

 

Plan is to outlive every relative, spending my last days taking illegal medications and doing risky activities

 

It's not the will that costs, its the lodgement of probate which is based on a % of asset value (& will cost more than the preparation of your will, if you behaved).

Linky

 

I suspect she wasn't entirely joking.

One of the aspects I needed to get my head around was why some provisions were included such as gifting to the Executor shares I hold in a company acting as trustee for any non-fixed trust or SMSF. Took me a while to understand the implications. That's only one example.

So well done to those who do fully comprehend the content of their Will.

 

That is so you can arrange for the right persons to control the trustee of those trusts.

 

I wouldnt be that dumb and make any of those mistakes.
Do I still "need" a lawyer?

lawyers love to make you think you need them for things you actually dont, sorry but I think I'll be right.

 

Well you wont be around to see what happens anyway.

 

no one needs a lawyer to make a will. just like you don't need your own doctor.

 

And after you have done your own doctoring, you'll need a lawyer in order to sue yourself. Hold on. By then it's too late. Damn it.

I wonder how those DIY wills which include charities deal with the events where the charity has subsequently be deregistered or has merged. ABN or ACN details?

 

It's common for people to leave things to charities which don't exist or did exist once or even never existed. Courts will agree to substitute with a charity of similar goals, after application and sometimes different charities fighting over the gift.

 

Was chatting earlier today about wills, friend of the family has already distributed larger assets to their 2 adult kids who have 2 & 3 kids each. The friend is considering leaving the family home (inner-Sydney desirable suburb >$2m) split equally between the 5 grandkids.

Fraught with danger & open to contest as the two adult kids get nothing and the 3 GK would recieve more than the other two combined.

This is when it's much simpler to leave it to the direct descendents 50/50 & certified adopted kids (none).

 

otoh, the estate sells the property, and put the proceeds into two testamentary trusts and buy shares in it. Tax free income for the next couple of generations.

 

This is effectively what my mum did, but it was after discussion with us. I'm single, no kids, so effectively get nothing but I'm happy with this since I am more than comfortable already and would rather the money goes where it can make a real difference. You can argue this both ways, but if you divide an estate equally between children but going to grandchildren then child A is 'unlucky' to be one of four as compared with cousin 'B' who is an only child.

 

True however state law varies - in nsw provision must be made for children IIRC (not grand kids). If the split is inequitable, then it can be contested. The more parties who stand to inherit, the greater the probability of attacking the will.

Another situation has a neighbour with 2 siblings. One married (no kids, spouse has substantial assets), the other single (2 adult siblings, no assets). The two parties don't get on. A 50/50 split could be inequitable however an unequal split might be contested due to the infighting.