Much has been made of panic buying as many Australians rush to protect their families from the perceived risk of dwindling supplies, whether that fear is reasonable or not.
But what about protecting your family financially? Economic risk is not the only issue being faced. What about managing your affairs during isolation or illness?
If you do not have an estate plan or you haven't reviewed it recently, it's time to deal with it. Urgently.
Review your will
When was the last time you looked at your will? Check your executors, guardians for minor children, any specific gifts and your beneficiaries.
Is your will enough? Is isolation going to increase existing family tensions? Have you had an advice on how to limit the prospect of challenges against the assets of your estate? If there is a risk your wishes won't be respected, it's important to remember that generally the only people who gain from families fighting are the lawyers dealing with the dispute.
Enduring powers of attorney
Are your attorneys appropriate and does your document deal with all the assets you own and also control? Does it deal with your superannuation interests and the potential for conflict transactions? This can be a potentially problematic issue for families in business together.
If you are concerned about how you might be treated if you are hospitalised, you may wish to consider implementing an advanced health directive. However these must be signed off by your general practitioner, so sooner is better as their resources become stretched.
Superannuation
Review pension documents and binding death benefit nominations to ensure your superannuation is going to benefit your intended beneficiaries. A recent rise in disputes relating to the exercise of trustee discretion in the payment of death benefits from self-managed superannuation funds highlights the importance of reviewing death benefit planning.
Family trusts
Who will control the trust if you are temporarily or permanently incapacitated or die? Reviewing your family trust deed and any amendments is essential as assets held by a family trust do not form part of your estate and cannot be bequeathed under the terms your will. If there are large loan accounts to or from beneficiaries in the financial statements of the trust, your assets may not actually be going where you intend.
Property
Unless held in joint tenancy with another person, land registered in your personal name passes to your estate. Reviewing how your property is held is essential to ensure that it passes to your intended beneficiary. This may be done through your will, or through changes to how ownership of the property is registered.
Having an up-to-date estate plan in such difficult and uncertain times is essential to ensure your loved ones will be in the best position to deal with your incapacity or death while also minimising the risk of dispute, or expensive rectification action.
- Published by Holding Redlich partner Kylie Wilson, special counsel Laura Hanrahan and Nicole Treacey.
