General Estate Planning issues (Wills, PoA, AHDs)

[JohnK]

I would argue that aged care has had a lot of attention paid to it. The vultures have been ripping it off for years under the guise of privatisation.

That's only very recent though?

The creeps that work in aged care and steal the gifts those in aged care received should have serious jail time. I hope there's been action taken against them and they never get another opportunity to work in those positions again.

 

[lovetravellingoz]

I have never felt that a Will is a must do item. Do we have inheritance tax?

@get me outta here I think mum and dad are beneficiaries of my superannuation. I will update to include daughter instead although I need to think about that one and what it would cost as I don't want my daughter accessing any money before she is 30. I want her to work and learn about life instead of having the ability to throw money away because she has more than enough.

Your last point is but one of many why you MUST have a will.


However also consider that both you and your wife may die at any time. In such a situation would you really want your daughter to be left penniless till she is 30?


PS..perhaps financially educate both your wife and your daughter now and then your concern will be not a concern.

When she is old enough help her get a casual job etc.

IE Don't give someone a fish, teach them to fish and give them the gear to do so.

 

[CaptJCool]

In many states of Australia you CANNOT DISINHERIT your spouse, domestic partners (mistresses) and biological children. Even without a will, all these people will have claims on the Final estate of the last living parent

 

[Buzzard]

In many states of Australia you CANNOT DISINHERIT your spouse, domestic partners (mistresses) and biological children. Even without a will, all these people will have claims on the Final estate of the last living parent

Do I need to move?

 

[JohnK]

Your last point is but one of many why you MUST have a will.


However also consider that both you and your wife may die at any time. In such a situation would you really want your daughter to be left penniless till she is 30?

You make good points in your whole post. Very wise words. I keep seeing this thread and realise I still haven't done anything. I need to have a chat to my brother and we need to organise 5 wills.

But note that life is not always as simple as people think. e.g. if I pass away my wife will not remain in Australia.

I need to see how easy it will be to make my brother the executor of my will. Everything will go to my daughter but need to ensure my wife has a comfortable lifestyle in Thailand.

Our house in Thailand is almost ready. We will start sending money to Thailand with a view to buying a condo in Chiang Mai/Hong Dong that will generate monthly income we can use for holidays but can also be an income stream for wife later.

With regards to our daughter she is getting some valuable lessons in life. I don't give in to all her wishes and she will soon start to do chores in return for payment. Still too young to get a job but I suspect once she's old enough she'll get a part time job in cosmetics/fashion until she finishes her studies.

 

[QF WP]

@JohnK, some further food for thought and done without giving you personal advice (as you should consult lawyers, accountants and estate planning specialists):

Shouldn't be an issue for your brother to be your Executor, so long as he has capacity and is willing to act. You trust him to do what is best for his sister-in-law and niece. Consider whether he should be the sole executor, or joined with other people (trusted friend, colleague or lawyer as joint Executor) to share the load. Also any Will drawn up in Australia can consider Australian as well as Thai assets, or separate Wills in each country to handle the assets held in those countries.

Consider and discuss with Solicitors a life interest to your wife for your property (allowing her to live in the property until she passes) with the property then going to your daughter.

Consider in whose name the condo purchase should be made (joint with your wife, solely in your wifes' name, wife and daughter as joint tenants or all three of you in joint tenancy) to benefit income distribution whilst renting as well as passing the asset in the event of the demise of (any) owner? May again depend on Thai law for property ownership.

There are a number of financial planners who give advice to expatriates. I use one for my expatriate clients, as I know one of the principals well (he is a member of AFF, although I don't think he posts). Pretty sure they already have Thai-based clients. Happy to give you a referral to see if you want to work with them. They will be able to refer you to appropriate specialists.

 

[JohnK]

Thanks @QF WP.

I fully trust my brother. There's no one else that I would trust being executor without paying for a service.

As for Thailand everything is in wife's name including current land/house as well as future condo and the car we will buy. I have piece of mind knowing that if anything happens to my wife it automatically will go to my daughter and no one can have any claim to it. If family try to sell no court will allow them until daughter is 20 years old and by then she can make her own decisions anyway by Thai law.

Plus I don't want to own anything in Thailand as there are tax implications in Australia where as for now my wife does not earn much here so tax if any is minimal.

 

[Pushka]

Not that we are expecting disaster for our ME cruise in May or anything, but we did the visit to the lawyers today to complete the Trifecta. Last will was dated 2008. We thought our estate was simple. Until he started asking questions and gave options. . One thing that he stated was that because No2 son is now living in the UK, his share of our estate will be faced with additional taxes. That will be in addition to any super fund payout of 15%.

The lawyer didn't know the tax rate he'd have to pay out. Is anyone else in the same position with a beneficiary being based overseas?

 

[tgh]

Is anyone else in the same position with a beneficiary being based overseas

Yup… atm the billions left over all end up in a trust, it will be his call what to do with his share, he has a bit of cash still in au.
We plan to revisit our arrangements sometime as they were made quite a while back

 

[Pushka]

Is anyone else in the same position with a beneficiary being based overseas

Yup… atm the billions left over all end up in a trust, it will be his call what to do with his share, he has a bit of cash still in au.
We plan to revisit our arrangements sometime as they were made quite a while back

Ive been googling. Seems like it applies to benefits that raise CGT only, or income producing so houses, and not physical cash so much and so can specified which assets they receive. Of course if the cash is super then everyone is stumped the 15%. Are you saying that if he leaves money in an au bank account from proceeds of sale then it's safe? Read it can be as high as 45%.

 

[kpc]

I have been procrastinating about this for some time but we are going to Turkiye, Egypt, Jordan and Israel next month so I met with an Estate lawyer last week to set up a discretionary trust fund (instead of a traditional Will), and update my Enduring PoA and Guardianship...hopefully all signed before we leave.

 

[Pushka]

I have been procrastinating about this for some time but we are going to Turkiye, Egypt, Jordan and Israel next month so I met with an Estate lawyer last week to set up a discretionary trust fund (instead of a traditional Will), and update my Enduring PoA and Guardianship...hopefully all signed before we leave.

Funny how such trips spur us on. We are doing Egypt, Israel and Jordan. Saudi Arabia. Just the usuals. PofA, and health care. I think it will only be an issue if we both go at once. Once one goes then the other will divest in advance. Damn Tax office. We have a trust for our business, not sure if we can use that.

 

[VPS]

Ive been googling. Seems like it applies to benefits that raise CGT only, or income producing so houses, and not physical cash so much and so can specified which assets they receive. Of course if the cash is super then everyone is stumped the 15%. Are you saying that if he leaves money in an au bank account from proceeds of sale then it's safe? Read it can be as high as 45%.

When my friend in the UK died we had to pay 45% in death duties and that was a substantial estate

 

[Pushka]

When my friend in the UK died we had to pay 45% in death duties and that was a substantial estate

That sounds about what I've heard. I kind of understand it when it's not a citizen living in the overseas country. But an Aussie just because they live overseas, while beneficiaries in Oz might pay nothing.

 

[VPS]

That sounds about what I've heard. I kind of understand it when it's not a citizen living in the overseas country. But an Aussie just because they live overseas, while beneficiaries in Oz might pay nothing.

sadly I think you’re going to have to get someone in the UK to check. I was lucky that I wasn’t double taxed but when I got the money in Australia I didn't have to pay inheritance tax. I’m also still waiting for the ATO to ask where the money came from but nothing yet

 

[Pushka]

sadly I think you’re going to have to get someone in the UK to check. I was lucky that I wasn’t double taxed but when I got the money in Australia I didn't have to pay inheritance tax. I’m also still waiting for the ATO to ask where the money came from but nothing yet

It's an ATO thing with us so tax is levied here. I don't think ATO bothers with overseas sources on inheritance just like I don't expect the UK treasury to care about ours.

 

[VPS]

It's an ATO thing with us so tax is levied here. I don't think ATO bothers with overseas sources on inheritance just like I don't expect the UK treasury to care about ours.

My accountant did tell me to be prepared to explain to the ATO why all this money hit my account.

 

[CaptJCool]

There’s no inheritance tax for Australians

the tax on death is

on superannuation and that’s based on whether you’re under or over preservation age (as an aside US citizens pay taxes on tax-free Aussie super and there’s no tax credits to offset it)

there’s even some loopholes on CGT
For example
a person who has a right to occupy the property under the deceased's will
see 7.

Inherited property and CGT | Australian Taxation Office

Find out if the inherited property is exempt from CGT, and what happens if there was more than one owner.

www.ato.gov.au

so even years later, there’s no CGT on inherited homes...

 

[kpc]

There’s no inheritance tax for Australians

the tax on death is

on superannuation and that’s based on whether you’re under or over preservation age (as an aside US citizens pay taxes on tax-free Aussie super and there’s no tax credits to offset it)

there’s even some loopholes on CGT
For example
a person who has a right to occupy the property under the deceased's will
see 7.

Inherited property and CGT | Australian Taxation Office

Find out if the inherited property is exempt from CGT, and what happens if there was more than one owner.

www.ato.gov.au

so even years later, there’s no CGT on inherited homes...

I went through all these with my Estate lawyer last week....the problem is laws now may change later. One thing I didn't know is that you can leave your Super to spouse with no tax payable, but if you leave it to your kids, they may have to pay tax on it at their marginal rate!

 

[RooFlyer]

One thing I didn't know is that you can leave your Super to spouse with no tax payable, but if you leave it to your kids, they may have to pay tax on it at their marginal rate!

The difference being whether the recipient is a dependent or not.