Wills, and Dealing With Spendthrifts

It is a situation I had to wrestle with over my Will @Silverghost. Finally decided against a Protective Trust for one beneficiary and elected for Beneficiary Controlled Testamentary Trusts.

Very difficult for me to come to a decision. While I have doubts on whether they will make "correct" financial decisions I couldn't come to the conclusion they didn't have the capacity to make such decisions.

I didn't find it easy at all so best of luck.

 

Is the $100k allocated for alcohol, women, and gambling. The rest of the money they can waste?

 

Thanks, SatayKing.

I think one of the most difficult things is trying to decide on the specific objectives and outcomes to be achieved via the will. I've been reflecting on that a while. In my own circumstances, a protective trust seems like the best option to protect the beneficiary from themselves.

 

At least you're doing the task difficult (and pricey) though it may be.

Have met a number who either do not have a will, haven't thought in depth about the details ("I'll just split my super equally. It's fair.") or horror of horrors use what I think are those awful free will kits.

 

Thanks @geoffw.

Although this thread is on one specific aspect it is such a vast subject. It seems to be a can of worms with each Will being unique in it's own way.

Lots of good information in threads of this nature. I've picked up some very useful information and I must say I appreciate the thoughts of @Terry_w and others who post.

Personally, I disliked having to do my Will for various reasons including one strained family relationship. Fortunately, I was able to deal with a legal firm where they listened, worked with me through the process and didn't just tick boxes.

 

Sorting through these issues is tricky. But an investment up front in time and cost to update my will should hopefully save a whole lot more hassle, time and cost later for my loved ones trying to sort out my estate once I'm dead.

And while I'm middle aged, you never know when you're number may be up. Last week most of a large gum tree on my block fell without warning. I'm outside a lot, and had walked under that tree many times that day. Wrong place, wrong time, and I would have been cactus. Time to get that updated will sorted!

 

Impressive @Silverghost.

The only success I know of when touching on these issues was when I was driving a neighbour back from the airport.

Initial question was if they should see a financial planner. Usual worry about low interest rates and such. I skirted around that and later gave them some links to look at but it got down to what the family had in place should the worst happen. Caring for the needs of young children and the like.

Heard back they are getting the ball rolling. Indicated only after those matters are in place will they investigate investing.

Do not know specific details as it's none of my business but it was nice to get some positive news.

 

They will have a scale rate. eg Public Trustee NSW. They have a nice business of drafting wills for free on the proviso they are executor. And then there are those who die without a will. State law appoints them.

I would add another concern....They can make choices no family member has input in. eg They may sell an asset which you all agree should be retained. eg John McGrath's mum dies without a will. Her home is to be sold by the public trustee. John says - I will sell it and wont charge a commission or any fees. They can ignore him. He says I will buy it. They say - attend the auction.

This issue can seriously impact children too. They can hold assets on trust and arent answerable to anyone.

Executor Fees and Charges | The NSW Trustee and Guardian

 

Very informative Paul, thanks for this.