Purchasing a property is a large investment, possibly one of the largest financial investments most people will ever make and when it comes to money and property, planning ahead can afford you and your family peace of mind.  We often have clients tell us that they have not yet executed a will, so in this weeks' edition of the North Lakes Messenger, we will cover not just the importance of wills but also some of the other areas of law pertaining to Estate Planning.

Estate Planning

There are several ways to ensure that your estate planning goals are accomplished, two of which are most common and easily considered the most important part of estate planning.  These being the execution of a Will and the appointment of a Power of Attorney. 

When purchasing a property or making any financial or personal change to your circumstances we recommend that you should always review your current Will and Power of Attorney as it is important to keep these documents up to date.

At North Lakes Conveyancing, in addition to our standard conveyancing services, we also prepare Wills and Powers of Attorneys and offer several "package deals" for clients purchasing a property so that they can ensure that they have valid and enforceable wills and powers of attorney that accord with their current wishes.

We are also happy to look after clients with a range of other Estate Planning needs, such as:-

Testamentary Discretionary Trusts

A Testamentary Trust is where a trust is created by a Will.  It can be useful in circumstances where there has been a second marriage and the testator/testatrix wants to provide for his or her spouse and allow them to have the benefit of certain assets until their death, but still leave the ownership of the assets to his or her children from a previous marriage upon the death of the new spouse or where trusts are to be set up for an inheritance to occur for a child at a certain age.  Testamentary Trusts only come into play upon the death of the Testator or Testatrix of the Will and the specific terms of the trust are included in the Will. 

Advanced Health Directives

An Advanced Health Directive is a document that is prepared by a person to give clear and concise instructions in relation to medical care in the event that the person may become incapacitated or so ill as to be unable to make decisions regarding your medical treatment for yourself.  In an Advance Health Directive you can state what medical treatment you want or don’t want, any religious matters that could affect your treatment (i.e. Blood Transfusions), whether you want life sustaining measures to be taken, palliative care measures etc. An Advance Health Directive only comes into effect when you become unable to make medical decisions for yourself.

Trusts

An Inter Vivos Trust is a legal arrangement where a corporation or person known as the “Trustee” holds certain property, like assets, investments or cash to name some examples, for the benefit of a one or more “beneficiaries” who are named in the Trust Document as such.

Two of the most useful purposes for creating a Trust are:-

Tax purposes

It can be advantageous for some people for tax purposes to transfer or purchase some assets via a Trust as opposed to retaining or purchasing the assets oneself. 

Protection of Assets

If an asset is transferred to a trust (or purchased by a trust) then it will thereafter be the property of the Trust.  Meaning that because the asset is not owned by either the Trustee or Beneficiaries, should any of these persons suffer financial difficulties, become involved in Court proceedings, the assets usually (subject to some exceptions) remain protected by the Trust.

There are four basic types of Trusts, namely:-

• Discretionary Trust;
• Simple Trusts;
• Protective Trusts; and
• Unit Trust.

Each of the above trusts are useful under different circumstances, and we would be more than happy to consult with any readers interested in this matter.

The information contained herein does not constitute legal advice relevant to each individuals' specific situation.  The Information contained herein should be used as a guide only and is not conclusive of all information relating to Wills and Trusts.   For further information and before making any decisions in relation to Estate Planning it is important to see a Solicitor for full advice and information.