Genders and Partners

Intestacy: How Property is Distributed without a Will

Estate Planning, Wills, Wills and Estate Planning

When a person dies without a Will, this is known as dying “intestate”.  This might happen because their death occurs before they even considered writing a Will. Some people feel that they don’t need a Will because they don’t have a substantial estate. A person might write a Will, only to have a Court declare it invalid after they die, which has the same legal effect as dying without a Will at all.

When a person dies without a Will, the law has to find a way to distribute that person’s property. In some parts of the world, the government will take most or all of the deceased’s estate, but in most western countries there is a strong preference in the law to keep property in the family of the deceased, generally leaving it to the closest living relatives.

The exact order of priorities among relatives differs from state to state in Australia, but the goals of intestacy law (keeping property in the family) are broadly the same, so the schemes in each State are usually quite similar.

Often the surviving spouse will receive the first “piece” of the deceased’s estate. The value of this piece varies over time.  For example, in South Australia for many years the surviving spouse in an intestacy would receive the first $10,000 plus a percentage of the remaining estate. In February 2009, the law in South Australia was changed to increase this to $100,000 plus a percentage of the remaining estate.

Wills and Estate Planning Adelaide- Comfort = Complacency?

Wills and Estate Planning Adelaide: Comfort = Complacency?

Estate Planning, Wills and Estate Planning

As Baby Boomers start to keel-over, we are about to witness the greatest “transfer of wealth” ever in Australia’s history. This segment of society is a BIG chunk of our national population, and it represents a massive percentage of our private net-worth as a nation.

While this is happening, the Gen-X and Gen-Y youngsters are growing-up fast, and realising for the first time that bull-markets don’t last forever.  They now have new burdens of responsibilities to their own kids coming through behind them.  They are suddenly recognising that life doesn’t owe them, and they’ll have to work for what they want.  It will be interesting to see how they cope.  They’ve been raised in very good times, when the equity in our homes unlocked a never-ending orgy of consumerism.  Who needed to save, when debt was so much easier, and capital gains would take care of that.  Why delay gratification, when the latest big-screen home-theatre can be installed today, with payments over the next 10 years?

But now we are formally acknowledged to be in a debt-fuelled recession.  Our economy has been very kind to us for a long time, and people have become used to a certain level of comfort and security – but that is no longer guaranteed.

So how will you look after yourself and your family in these challenging times?  Have you created a fully-integrated estate plan, and reviewed it regularly?  Have you taken the steps necessary to preserve your wealth for your old-age, and to pass your assets onto the people you care about, or are you simply hoping to live forever?

Death & taxes, illness & share-market corrections may be unavoidable … but they don’t have to ruin your family or your business.  Make the effort to protect the people you really care about.  Call Genders & Partners for integrated estate planning in Adelaide and all over South Australia. And do it NOW … before it is too late.

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Asset Protection – Be Smart, Be Safe

Asset Protection, Business Succession Planning, Trusts, Wills and Estate Planning
Genders and Partners | Asset Protection – Be Smart, Be Safe | Wills and Estate Planning

Protecting your assets is one of the most important financial decisions you will ever make. Asset protection is a valuable and important part of a modern integrated estate plan. No matter how many assets you have, you should make an effort to protect them, but try to avoid these common mistakes:

1. Lack of Knowledge

Lots of people misunderstand how asset protection works. Some people believe asset protection makes them “judgment proof.” Even if your assets are protected, you may still cop an adverse court judgment. In some cases, efforts you have made to protect your assets can be overturned. This is why it is important to work with a professional when creating your protection plan.

Don’t make the mistake of assuming asset protection and estate planning are the same thing. Asset protection is part of any strong estate plan but they are not the same thing. Some trusts do nothing to protect you from creditors, and Family Court issues can interfere with the best-laid plans.

Don’t make the mistake of confusing bankruptcy law and asset protection law. In a state like South Australia, newer bankruptcy laws do not prevent the “clawing back” of assets you may have tried to unsuccessfully protect. You have less protection in bankruptcy court, so filing for bankruptcy should be used as a last resort.