General Estate Planning issues (Wills, PoA, AHDs)

[Flying mermaid]

I was recently involved in a friend's estate when she died suddenly and we didn't have any of her passwords and couldn't even get into her phone. It was a nightmare to try and close accounts etc. It would have been so much easier if she had left a list or even the password to a password manager with her solicitor

All my passwords are in the safe and the kids and Mr FM know the combination. Could be a problem I guess if someone gets into it - I will be changing a lot of passwords very rapidly

 

[tgh]

We must be using the same lawyer !!!

 

[suze2000]

If you have a simple estate then it’s a nice to have really but not critical.

Couldn't disagree more. I know of someone where there was only a simple estate and the laws were pretty clear there was to be a equal split between the children because he was intestate. (despite one child urging him to make a will)
Didn't stop one sibling arguing they should be allowed to keep his house (his only asset!) - or be allowed to live in it. But they would never have maintained it or paid the bills etc etc so it was eventually sold, not without many vicious and distressing arguments.

 

[Pushka]

Couldn't disagree more. I know of someone where there was only a simple estate and the laws were pretty clear there was to be a equal split between the children because he was intestate. (despite one child urging him to make a will)
Didn't stop one sibling arguing they should be allowed to keep his house (his only asset!) - or be allowed to live in it. But they would never have maintained it or paid the bills etc etc so it was eventually sold, not without many vicious and distressing arguments.

Even with a great will, it can always be contested if someone decides they want to take it on and if they meet up with a likewise minded lawyer who has their eyes of the legal fees - so the estate has to be worth it - it can all come undone.

I’m thinking with all the funds tied up in Superannuation these days that in a few years time if the funds managers play hard ball with the survivors then we might be hearing of it all in the media.

I wonder if there’s a case when you get to a certain ripe age that getting money out of the hands of the super funds might be a thing to do. Maybe that’s when you can transfer all the super funds from the current managers into an SMSF so you have more control over what happens after death. Rather than a bunch of non related parties deciding what they think is the ‘right’ way to distribute funds.

 

[ontheaisle]

Wills do not need to address prior relationships. And the laws of intestacy are clear re the spouse/ partner you were with immediately prior to death.

Actually, that's not technically true. In NSW, if you are legally married to one person (i.e. separated but not legally divorced) and living in a de facto relationship with another person, the law treats you as having two spouses and each spouse is entitled to a one-half share of the estate. Happens more than you'd think.

Or where the deceased didn't actually bother legally divorcing their first spouse then went and went on to a second (or third) bigamous marriage, unknown to the subsequent spouse...

 

[cove]

Now that you have read 245 posts you might want to read about Aretha Franklin passing away without a will on google.
She had big unbanked cheques just in a pile.
Passing away without a will is not a good idea.

 

[JohnK]

@JohnK we are not writing anyone off in this thread.

I don't know what's going to happen in 5 years time let alone 25 years time.

My current thinking is sell everything but ensure capital gains is reduced as much as possible and spend everything while I am able then go begging for government to take care of me.

I've certainly paid more than my share of tax and if people that have not paid tax in Australia can lap it up then I can too.

 

[cove]

@JohnK I have gone from being the great acquirer to selling off something surplus every couple of years. Sure there is some capital gains tax but it is at a concessional rate at the moment. Once you have done this you can improve your lifestyle.
Get a will for the just in case and start living the dream.

 

[cgichard]

What I resent is having to take a pre-termined percentage out of my SMSF every year. With interest rates as they are, it would be better left in the SMSF. If I don't need that much - and even now I'm trating myself to travelling in J , I don't need it all - then it has to go into some form of savings account and there it just increases my assets for Centrelink's age pension calculation. Under the mattress would be better, if I could bring myself to do that. I'd far rather it stayed in the SMSF and made that last longer if I do in fact live longer.

 

[Buzzard]

What I resent is having to take a pre-termined percentage out of my SMSF every year. With interest rates as they are, it would be better left in the SMSF. If I don't need that much - and even now I'm trating myself to travelling in J , I don't need it all - then it has to go into some form of savings account and there it just increases my assets for Centrelink's age pension calculation. Under the mattress would be better, if I could bring myself to do that. I'd far rather it stayed in the SMSF and made that last longer if I do in fact live longer.

I'm not expecting to get anything from Centrelink any time soon. Any surplus from my drawdown gets reinvested into an ETF that mirrors super or in to an LIC with DRP on for compounding.

 

[mrsterryn]

I'm not expecting to get anything from Centrelink any time soon. Any surplus from my drawdown gets reinvested into an ETF that mirrors super or in to an LIC with DRP on for compounding.

Not even a Commonwealth seniors card?
If you are over age pension age

 

[Buzzard]

Not even a Commonwealth seniors card?
If you are over age pension age

I did get a Seniors Card when I turned 60.
Applied for it 2 weeks before my birthday, didn't want to miss out on a single days use Other than free public transport in SA and transport concessions interstate, it doesn't really get you much.

 

[Flying mermaid]

Not even a Commonwealth seniors card?
If you are over age pension age

If you are talking about the health card, it’s income tested so hard to qualify for these days.

We have the state seniors card, which gives us free travel on the bus.

 

[mrsterryn]

If you are talking about the health card, it’s income tested so hard to qualify for these days.

We have the state seniors card, which gives us free travel on the bus.

The deeming rates are pretty low
This isn't the low income health care card
This is the Commonwealth Seniors Health card

 

[Flying mermaid]

The deeming rates are pretty low
This isn't the low income health care card
This is the Commonwealth Seniors Health card

Yes I know - unfortunately at the moment we blow the income test because Mr FM is still doing some consultancy work. I think even the low deeming rates would still put us over but I will keep an eye on that once he agrees to stop. Unfortunately he really likes the work and he can do it at home and when he likes - no schedules or time frames and they keep buying him toys like new computers and a holo lens.

 

[mrsterryn]

Ahhhh noice lol
The card only gives medication from a federal perspective, however some states do also give other discounts

 

[Pushka]

I did get a Seniors Card when I turned 60.
Applied for it 2 weeks before my birthday, didn't want to miss out on a single days use Other than free public transport in SA and transport concessions interstate, it doesn't really get you much.

They do send out offers. I’ve done a free photography course. That’s the SA one. Must check Commonwealth out. It really should be automatic - like the bowel cancer test kit.

 

[Flying mermaid]

Ahhhh noice lol
The card only gives medication from a federal perspective, however some states do also give other discounts

The markets give 10% discount on Wednesday’s, but I think he was getting that before he turned 60, because they just assumed a balding older man doing the shopping on a Wednesday had to be a pensioner

 

[Buzzard]

They do send out offers. I’ve done a free photography course. That’s the SA one. Must check Commonwealth out. It really should be automatic - like the bowel cancer test kit.

In all the years I've had it, never received a thing. Neither has +1.

 

[mrsterryn]

This can give some information

Who can get a Commonwealth Seniors Health Card - Commonwealth Seniors Health Card - Services Australia

You can get a Commonwealth Seniors Health Card if you meet certain criteria.

www.humanservices.gov.au

Commonwealth Seniors Health Card

Concessions available to Commonwealth Seniors Health Card holders.

www.sa.gov.au

South Australia concessions

SNSW Savings Finder

NSW Saving Finder

questionnaire.costofliving.service.nsw.gov.au

NSW