Drawing Up A Will For Your Estate? Read This

Death is not a pleasurable thought but if you have worked all your life to build an estate, you should give death some thought. The idea is not to die intestate or without having drawn up a will. I have seen various cases where those beyond the circle of spouse, siblings, children and close relatives have taken advantage in such situations. In the light of this fact, I confess liking an article by Ken Raiss on the Property Update.

It talks about drawing up a will through which the estate passes its assets and funds to people chosen by you. I also like the point where Raiss talks about curbing tax impact on your beneficiaries.

Don’t pass assets to family members caught in disputes or bankruptcy

While we talk of it, it is important to remember not to pass your assets to those who have either filed for bankruptcy or are engaged in disputes. I think you know what may happen in such cases? Let me still tell you- Your estate passes on to someone who cannot latch on to it and is forced to pass on to a person/entity who/that is nobody to you- distressing thought really!

Ponder over Capital Gains Tax

Discuss Capital Gains Tax thoroughly with your accountant and bring in your lawyer to find out if your will has any chance of being contested in court (by a begrudging relative)

Estate assets and non-estate assets

I think Raiss pays due emphasis on estate assets (liquid and fixed assets) as well as non-estate assets (assets in Trust, Superannuation funds and so on).

Testamentary trust and must-in clauses

You can also help your ‘chosen one’ by forming a Testamentary trust and passing the control of the trust on to him. To ensure your money does not find its way into wrong hands, Testamentary trusts are protected by various clauses.

I am fond of the Lineage Clause (I don’t know why- perhaps the name has a ring to it). The clause ensures that only your direct descendants can benefit from your trust.

You can read the original article here.

I love a line from Marquez which says “Grandparents don’t die when they should but when they can”. I am tempted to agree.

After all, they won’t feel safe embracing the eternal quietness until they are sure that their money and assets will pass on safely (and sensibly- tax issues sorted out) to the next generation.

Have you looked thoroughly into the “Power of Attorney” clauses?