Thread: Reasonably Cultured Crew

Probably not much help but it was pointed out to us by our solicitor recently as the best way to structure your will. She also mentioned that if children were involved to think carefully about the longevity of potential guardians so that in the event of our demise the kids wouldnt have the potential of losing a guardian shortly after.

Regards,
Tote

Putting a fox in charge of the chickens comes to mind....

Steve

So many factors....it all depends .. and it becomes so individual that no one summary is going to suit all cases. There are many tales about estates being mismanaged to the benefit of an executor.

However, if you have a functioning family with adult offspring there is nothing wrong per se with executors being beneficiaries (and as outlined below, attorneys and guardians).

You don't mention a partner/wife , but factors could include the relationship you have with your partner, the relationship you have with your executor(s) and the relationship they in turn have with your beneficiaries, the current age of your kids etc etc., depends too on how rich you are (maybe you're like Gina Rinehart?)

Equally important and often overlooked is the need to have provision for power of attorney and guardianship for yourself if, as a result of accident or illness, you end up without the ability to manage your affairs and make medical decisions for yourself.

If these are not in place the consequence is that the state government guardian will take over management of you and your affairs (even if your spouse or next-of-kin is able to do so they will lose control to the government guardian).

There are many other legal constructions for estate management available...

My advice would be for you to see a competent, trustworthy & honest solicitor (they do exist) - it'll cost you around $500 a head (maybe $900 for a couple) for a straighforward will, a power of attorney and the guardianship paper to be drawn up and held.

You need to be clear about the role of the executor. Are they only going to disperse the estate or will there be a long term disbursement.

When someone dies intestate, it often falls to the remaining family to divide the estate. In that case, the executors are also beneficiaries and family.

I see no particular reason for saying that the executor should not be a beneficiary. My wife was executor to her mother's estate and did a very good job of ensuring what was left was divided fairly, after debts had been covered and bequests met (where they were able).

Even someone who is not a beneficiary can do the job poorly. The important thing is to select someone who you trust to carry out the intent in the will and try not to be too prescriptive.

On the other hand, if you have set up a trust, then you need to have at least two trustees who have no opportunity for personal pecuniary gain. That is normally covered by statute, and there are rules for different kinds of trust. But again, you must choose your trustees with care.

Originally Posted by 87County

So many factors....it all depends .. and it becomes so individual that no one summary is going to suit all cases. There are many tales about estates being mismanaged to the benefit of an executor.

However, if you have a functioning family with adult offspring there is nothing wrong per se with executors being beneficiaries (and as outlined below, attorneys and guardians).

You don't mention a partner/wife , but factors could include the relationship you have with your partner, the relationship you have with your executor(s) and the relationship they in turn have with your beneficiaries, the current age of your kids etc etc., depends too on how rich you are (maybe you're like Gina Rinehart?)

Equally important and often overlooked is the need to have provision for power of attorney and guardianship for yourself if, as a result of accident or illness, you end up without the ability to manage your affairs and make medical decisions for yourself.

If these are not in place the consequence is that the state government guardian will take over management of you and your affairs (even if your spouse or next-of-kin is able to do so they will lose control to the government guardian).

There are many other legal constructions for estate management available...

My advice would be for you to see a competent, trustworthy & honest solicitor (they do exist) - it'll cost you around $500 a head (maybe $900 for a couple) for a straighforward will, a power of attorney and the guardianship paper to be drawn up and held.

$500 for what? Get a will kit!!

Originally Posted by stealth

$500 for what? Get a will kit!!

One could. In fact, if you are clear about your wishes, you don't even need that. You can write it on the back of a napkin.

There are few of us who are that clear about our wishes, a good lawyer is trained to prompt what you need to think and decide about. That is something a kit cannot do.

I have embarked upon a course of action that will negate any inheritance issues for my children. I'm going to spend it all before I die.

Having a will kit doesn't solve the problem of who executes the will after death.
In my parents' case, there was a family solicitor who was well-known to the family, and I was the executor so I pushed it through, but I involved my brother, who was the other beneficiary, at every stage, so he knew exactly what was happening. I even got him to check documents and he found an error the solicitor had made with my father's estate, so it can work if the parties have goodwill about it.
The positive of having an executor who is also a beneficiary is the executor is likely to push harder to make sure all the monies are collected, whereas someone with no personal interest might mot try so hard.