Wills - How are you making it last?

[Trembling Hand]

So with all the doom and gloom this question is probably of no relevance because we are apparently all going back to the stone age and a $ and property will be of no value soon But,

What are some of the things people are/have put in their wills to pass their lives work on? I thought I should update mine after a couple of near death experiences eek but looking for some inspiration? Mainly how to pass a bit of cash on without it being pissed up against a wall. How would you give to someone when you know they haven't got the skills to manage it & especially when you don't want it sucked away with FP fee's.

Will be getting it updated by a good honest lawyer cool but as we know they are as creative as a thumb tack so any ideas?

And how many consider their wills to be up to date?

 

[johenmo]

Some form of trust with lots of conditions? Not really sure. Age condition for when they get old enough? Have to pass some form of finance course?

My kids'd hate me if I did the above! Trying to get them interested in money mgt.

Mine needs updating. Tks for reminding me.
Cheers

 

[prawn_86]

TH,

Obviously it depends on how much cash you have, but you could look at setting up an annuity for say X amount of years. This means they would only recieve the interest, so they wouldnt be pissing it all up against the wall, and you could maybe set an age, like 40ish, where the entire amount paid out.

Does that make sense?

 

[nunthewiser]

im gunna fake my death

leave all the assets to my local convent

sit back and have a fat old time watching the blues between the vultures

amen

 

[prawn_86]

Oh and PS, anyone wondering what to do with their hard earnt can always send it my way...

 

[Gerkin]

Go to your accountant and talk to them. If you go along the trust option they will have to do all the regulatory work anyway.


And maybe talk to your family as well. You could always think about lifetime tenecies etc.

 

[Trembling Hand]

Actually I have spoken to my family and told them that I will have nothing left for them. I'm trying to spend it all before they get their greasy mits on it. Even threatened the dog home donation. But they may get me before I get the chance to spend it all

 

[MS+Tradesim]

Actually I have spoken to my family and told them that I will have nothing left for them. I'm trying to spend it all before they get their greasy mits on it. Even threatened the dog home donation. But they may get me before I get the chance to spend it all

The Millionaire Next Door has a lot of evidence supporting the idea that people who inherit generally don't utilise it well. If you really think it's just going to end up against a wall, then gift it to your favourite charity/cause or set up your own foundation.

Edit: barring the unforeseen, I intend to have given it all away before I die.

 

[Julia]

If you really think it's just going to end up against a wall, then gift it to your favourite charity/cause or set up your own foundation.

If you decide to do this then the lawyer needs to be very specific in the Will about setting out the reasons why your family are not to inherit. In many instances where such a Will exists, the family members will (collectively or individually) challenge the Will.

I can only speak for Qld and other States may have different rules, but here there is some law which from memory is called the Law of Succession.
This provides for next of kin to inherit unless very specific circumstances have been set down in the Will explaining why these people should not inherit.

Even then, the Court may override the decision of the deceased and award benefits to family members.

If your Will e.g. clearly states:

" I do not wish Bill Bloggs, my son, to receive any benefit from my Estate because he has shown complete irresponsibility in financial matters, despite all attempts to teach him money management, and further because he has throughout his miserable life shown me nothing but disrespect and therefore deserves no consideration upon my death."

then you are at least making the reasons for your bequeathing to a charity (or whatever) clear, and thus making it more difficult for any challenge by the dreaded Bill Bloggs to succeed in Court.



And the most nasty cut of all is that any such legal challenges to the Will are not paid for by the person petitioning the court, but the costs come out of the Estate. So if a family member was sufficiently bloody minded, they could maintain legal action until the money was all used up.

So much for being able to decide what you want to happen with your Estate.

Trusts, etc may be able to overcome this. I'd suggest to get the best possible legal advice.

 

[MS+Tradesim]

Following from Julia's point, if you have all your assets now inside trust structures you could have your estate lawyer become the trustee or principal after you die and thus have control remain in accordance with your wishes...depending on the structure and instructions to them.

Trusts are remarkably flexible and efficient - just need the wording right and have your estate lawyer clearly understand what you want to achieve.

 

[Trembling Hand]

Thanks guys. Most of my worry comes from the cash assets I have in sitting in companies that I use to trade. Would be a shock for someone to have that dropped in their lazy little paws when they have hardly been able to earn a living.

Can just imagine it creating their own mini economic stimulus package at Harvey Norman and Holden SVU then god knows what. Always had in the back of my head an idea to set up a trust and have it used for nieces & nephews education or even adventure fund. Need some good advice here because I guess its hard for anything to be administered after you have gone.

Oh by the way I have no kids, none that claim me anyway. Was more concerned about siblings.