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The Growing Need for Advance Care Directives

Estate Planning, Planning for Disability and Incapacity, Trusts & Guardianship, Wills, Wills and Estate Planning
The Growing Need for Advance Care Directives

A 2013 report from Alzheimer’s Disease International warns that the number of older people needing care globally is set to nearly treble by 2050 from 101 million currently to 277 million.

Alzheimer’s is the most common cause of dementia or senility. Symptoms include loss of memory, mood changes, and problems with communicating and reasoning.

The report reveals that as the world population ages, the traditional system of informal care by family, friends and the community will need much greater support.

This means that increasing numbers of people aged 60 or over will require long-term care.  This will put huge pressure on families, both emotionally and financially. Carers often have to give up work to look after elderly relatives.

This epidemic of dementia will have specific legal consequences for patients and the people caring for them.  In particular, their loss of mental capacity to make decisions in their own best interests, creates a need to put in place an appropriate system of delegated authority.

5 Common Estate Planning Mistakes

Estate Planning Disasters of the Rich and Famous

Estate Planning, Inheritance Claims & Contested Estates, Wills, Wills and Estate Planning
Estate Planning Disasters of the Rich and Famous

Death and taxes (and illness) 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.  Here are some lessons from famous people who made some BIG mistakes in their Wills and estate planning.

Celebrity: Allan Scott

Mistake: Not Managing Family Expectations in Will

In a Supreme Court claim in South Australia, two of Mt Gambier trucking magnate Allan Scott’s daughters settled claims against their father’s estate for more than $12 million each, more than triple what each had been left in Mr Scott’s Will, which he had signed while he was ill in the weeks before his death.  The millionaire businessman’s widow also has made a claim against her husband’s estate, yet to be resolved. In his Will, Mr Scott had left the bulk of his $600 million estate to two favoured children.

Wills and Estate Planning Adelaide: Estate Planning In Adelaide For Same-Sex Couples

Estate Planning, Wills, Wills and Estate Planning

Estate planning is one of many legal issues facing lesbian and gay couples. Increasing numbers of LGBT parents are raising children.

Estate Planning In Adelaide For Same-Sex Couples

In the law, there are recognised categories of parenthood, including biological (genetic), gestational, surrogate, and social.
Children raised by same-sex parents may be the product of adoption, artificial insemination, surrogate birth, or biological parenthood, yet in most cases only one partner is recognised as the legal parent, with the other parent remaining a legal stranger to the child.

The phrase “nuclear family” has traditionally referred to a married heterosexual couple raising their own biological children. Nowadays, more children are living in non-traditional families than ever before. This can lead to tricky legal issues if the couple ends their relationship and the non–legally recognised parent tries to maintain contact with the child.

Genders and Partners

Wills and Estate Planning Adelaide: More Adelaide Pet Owners Include Animals in Their Wills

Estate Planning, Pets, Trusts, Trusts & Guardianship, Wills
Genders and Partners

Senior lawyer specialising in estate planning and Wills in Adelaide.

Rod Genders from Genders and Partners, the oldest law firm in South Australia, says that state law does not permit animals to be direct beneficiaries of a Will, as the law regards the animals themselves as property.

However, caring pet owners can leave money for their pets in pet trusts with provisions for how it is to be spent on the pet.

As our population ages and fewer couples have children, there has been an attitude shift where many people have come to view their animals less as pets and more as members of the family.

Genders and Partners

Wills and Estate Planning Adelaide: More common pitfalls of estate planning and how to avoid them

Blended Families and Divorce, Death Benefits, Estate Planning, Pensions and Retirement Planning, Planning for Disability and Incapacity, Wills
More common pitfalls of estate planning and how to avoid them

In my law practice I see lots of mistakes that people have made when it comes to estate planning, as well as some estate-planning strategies that could be used a lot more.

One of the most common mistakes is a misunderstanding of beneficiary nominations. Nowadays, many assets are transferred at death through superannuation funds, life insurance policies and annuities.

The owner of those investments or insurances (the person who set them up) will often have nominated a particular person(s) to receive the benefits of them, once the owner has died.  This is a separate & binding contract which can bypass the owner’s legal Will.

Many people don’t appreciate how important it is to get the designations of those nominated beneficiaries right.  I typically see beneficiary nominations where at the start of the marriage each spouse nominates the other as the sole nominated beneficiary for the super & the life insurance.  Unfortunately most people forget to keep their binding nominations up to date.  They forget to add the children, or only add some of them, leading to unintended consequences & heartache.

Similarly, if a child dies, most people would want that share to go to that child’s children, ie to the descendants, down the bloodline to the deceased child’s children.  Sadly many people get this wrong, and end up accidentally disinheriting their grandchildren.

And you can’t necessarily rely on “common sense” to sort it out after your death. Unfortunately, there’s little consistency within the financial-services industry. If the insurance plan administrator or superannuation trustee doesn’t know how to handle it, your family will be the ones paying to sort it out.

5 Common Estate Planning Mistakes

Wills and Estate Planning Adelaide: Even More Reasons to Create an Estate Plan Now

Asset Protection, Wills, Wills and Estate Planning
consultation

Some people think that estate plans are for someone else, not them. A common misconception is that estate planning is only important for the wealthy or elderly. They may rationalise that they are too young or don’t have enough money to reap the benefits of a plan. But here are some more reasons why estate planning is for everyone, regardless of age or net worth.

  • Loss of capacity. What if you become incompetent and unable to manage your own affairs?  Legal, medical and lifestyle decisions will need to be made for you, but without a plan the courts will have to select the person to manage your affairs. With an integrated estate plan in place, you choose that person, through a careful combination of powers of attorney and advanced directives.
  • Minor children. Who will raise your children if you die? Although a court will make the final determination, you are able to nominate the guardian of your choice in your Will, and the court will give very serious consideration to your wishes.
  • Dying without a Will (intestate). Who will inherit your assets? Without a plan, your assets pass to your heirs according to your state’s laws of intestacy (dying without a will). Your family members (and perhaps not the ones you would choose) will receive your assets without benefit of your direction or of trust protection. With an integrated estate plan, you decide who gets your assets, and when and how they receive them.

Genders and Partners

Wills and Estate Planning Adelaide: Don’t Make These Common Mistakes with your Discretionary Family Trust

Estate Planning, Trusts, Wills and Estate Planning

Discretionary trusts (often called family trusts) are very powerful planning tools you can use for all kinds of purposes. Trusts can simplify & minimise or even avoid probate, protect your beneficiaries from creditors or divorcing spouses and

Don’t Make These Common Mistakes with your Discretionary Family Trust

can provide for education for grandchildren or your favourite charities.

When a trust is part of your overall comprehensive estate plan, you should try to avoid these common trust mistakes:

Mistake 1: Failing to title assets in the name of your trust

If you have not put your assets into your trust, also called “funding” your trust, you have lost some of the benefits of your trust.

Any assets that are in your own name at the time of your death will probably need to be probated. However, any assets that are titled in the name of your trust at the time of your death will avoid probate and usually result in lower after-death administration costs.

In order to receive the protection and benefits capable of being provided by the trust, generally (except for superannuation funds and certain annuities) most of your assets would need to be transferred into your trust during your lifetime.