If you’re looking for good reason to plan your estate, you should look no further than the case of Peter Brock.
Brock was known as 05 on the racetrack, yet after his death he became equally well known for his lack of estate planning.
A complicated personal life and several wills (one unsigned), led Brock’s partner, ex-partner and children into an acrimonious and expensive situation.
A situation no one would want to face, so continually highlighting the need for estate planning remains important.
Estate planning is more than writing a will; asset ownership during your lifetime and after death is dependent on the type of asset, whose name the asset is in and governing documents for each asset.
If a husband or wife dies and significant day to day assets such as house or bank account are held only in their name, those assets will pass into the deceased’s estate, which could leave the surviving partner with great uncertainty.
Holding such assets in joint names would leave the surviving partner with the certainty that the home and bank account would automatically pass to them.
It can be problematic if those substantial assets pass into the estate, even more so if there are children from a previous marriage.
With significantly more assets in the estate, some people may be dissatisfied with their bequests and make claims under state laws.
Court costs will eat into the estate, bad feelings will surely grow and decisions regarding distribution can be delayed, sometimes for years.
Similarly, superannuation without a binding death nomination will lead the trustees to identify all potential dependents and ask them to ‘stake a claim’ if they believe they are entitled to any part of the death benefit.
While the deceased may not be around to see it, their inadequate estate planning can lead to ongoing heartache and stress for those left behind.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you want help with your financial future, we think we’re Australia’s top financial adviser. We think we’re the best financial advisers in Tasmania.
