Wills

Through having a Will you set out your wishes regarding your estate. In particular you:

• appoint executors to deal with your estate after your death, and
• specify who is to receive your assets (beneficiaries).

If you die without a Will (called dying "intestate" ), legislation sets out the division of your estate between family members. Unlike the situation of appointing executors by your Will, if you die intestate there is no clearly identified person appointed to deal with your estate.

To ensure that your estate passes in accordance with your wishes, you must have an up to date valid Will.

We thought it would be helpful to supply some frequently asked questions about Wills, with some easy to understand answers.

HOW OFTEN SHOULD I UPDATE MY WILL?

Answer: Regularly. You should review your Will at least every 5 years or so to check that the Will contains your current wishes and reflects your current family and financial situation. You should also review your Will when any financial or family circumstances change, for example:

• a marriage breakdown or separation in the family
• the sale of your business or entry into a new business venture
• the birth of children or grandchildren
• the possible bankruptcy or other financial problems of yourself or of a child
• the establishment of a family trust.

WHAT INFORMATION DO I NEED TO GIVE MY LAWYER TO PREPARE MY WILL?

Answer: Brief details regarding:

• you
• your family situation
• your proposed executors
• your proposed beneficiaries
• your financial situation (where relevant)

WHAT IS A "TESTAMENTARY TRUST"? IS IT TRUE THAT TESTAMENTARY TRUSTS ARE A SMART WAY OF SAVING INCOME TAX?

Answer: Any trust-type structure set up by a Will is called a "testamentary trust". As testamentary trusts only take effect after your death, they differ from other kinds of trust (e.g. Family Trusts) set up during your lifetime.

The form of "testamentary trust" that is commonly referred to by accountants and financial planners relates to a particular type of trust where (usually) a child of the Will-maker can nominate that the child's share of the estate is held in a trust (rather than passing directly to that child) so that income can be allocated to that child and the child's family with subsequent savings in income tax.

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