1. Webinar:
Estate planning
Masterclass
Presented by
Anu Menon, Equity Trustees
5 April 2017

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2
Housekeeping
Webinar: Estate planning masterclass

3. | Bridgeport3
This webinar and information has been prepared and issued by Equity Trustees Limited (Equity Trustees) ABN 46 004 031
298 AFSL 240975. It contains factual information and general financial product advice only and has been prepared without
taking into account the objectives, financial situation or needs of any individual. The information provided is not intended to
be a substitute for professional financial product advice and you should determine its appropriateness having regard to
your particular circumstances. Before deciding whether to acquire, dispose of, or to continue to hold an investment in any
particular financial product, you should obtain and consider the relevant disclosure document.
Bridgeport Financial Services Pty Ltd (Bridgeport) is a Corporate Authorised Representative of Australian Planning
Services Pty Ltd (APS) ABN 55 010 521 810 AFSL 225982. Bridgeport is registered with ASIC 343723. Bridgeport has
partnered with Equity Trustees to deliver this webinar.
While all care has been taken in the preparation of this webinar (using sources believed to be reliable and accurate), no
person, including Equity Trustees, Bridgeport, or APS, accepts responsibility for any loss suffered by any person arising
from reliance on this information.
Disclaimer
Webinar: Estate planning masterclass

4. | Bridgeport
Meet the presenter
Anu Menon
Estate Planning Solicitor
Equity Trustees
Webinar: Estate planning masterclass4

5. Estate Planning
Anu Menon
Estate Planning Solicitor 5 April 2017

6. Agenda
• Who is Equity Trustees?
• Introduction
• Importance of Estate Planning
• Estate Assets vs Non-Estate Assets
• Testamentary Trusts
• Role of the Executor
• Case Study
• Questions

7. Who is Equity Trustees?

8. Parent
company
Established Trustee Wealth
Services
• One of Australia’s largest independent trustee companies
• Established in 1888 by a specific Act of Victorian Parliament
• We are partners with clients and their advisers, helping them with the
financial and emotional challenges arising from the preservation, growth
and inter-generational management of their wealth
Who is Equity Trustees?
Funds Under
Administration

9. Trusts Estate
planning advice
Philanthropy
What do we do?
Trustee Wealth
Services
Compensation
Trusts
Executor
services

10. Introduction

11. Introduction
Estate planning affects everyone
• Estate planning is much more than a Will – it involves a person organising his or her
affairs:
− to enable their wealth to be transferred on their death from one generation to
the next
− to make sure their affairs are looked after upon incapacity
− with professional advice to minimise risk and achieve intended outcomes
− by way of a properly documented strategy
− with minimum cost, tax and stamp duty

12. The Importance of Estate Planning

13. *Having the last word: will making and contestation in Australia (March 2015) http://www.uq.edu.au/swahs/Having%20the%20last%20word.pdf
of Australians
don’t have a Will
40%
Know your client
It is estimated that over

14. “Do you have a Will?”
• Procrastination is the main reason why people don’t have an appropriate Will
• Most people who have a Will do not feel it is relevant to their current
circumstances
• 93% of people provide equally to their children
• Does your Will need to be equal or fair?
• Putting it off because they are “not planning to die”

15. When does YES really mean NO?
Common Issues with Existing Wills
• Does not reflect current intentions
• Appropriateness of Executor or Guardian
• Too old
• Incorrectly signed
• Lost or Original can’t be found
• The Curse of the Home Made Will
• Will Challenges
• Loss of Capacity

16. The Curse of the “Simple Will”
“Home made wills are a curse.” Gray v Gray [2013] WASC 387
“If the will had been drafted by a competent legal practitioner, this
problem would not have arisen and the parties would have been
spared a great deal of trouble and expense.” Rogers v Rogers [2016]
WASC 208
*Master Sanderson – Supreme Court of WA

17. Estate v Non-Estate Assets

18. Estate vs Non-Estate Assets
Estate
(Sole name)
Superannuation
(including life
insurance held in
Super)
Family
Trust
Joint Assets
Life
insurance
Pass control?

19. Testamentary Trusts

20. Testamentary Trusts
Wills incorporating Testamentary Discretionary Trusts
Advantages
• Stream income
• Protection against bankruptcy/creditors
Disadvantages
• Does the client understand the document?

21. Testamentary Trusts
Wills incorporating special disability trusts
Advantages
• Asset not counted towards assets in asset test for Centrelink purposes
• Vulnerable beneficiaries protected
Disadvantages
• Limited application of funds

22. The Role of Executor

23. The Role of Executor
• An Executor is appointed in a Will to manage
the estate after death, distributing it in
accordance with the Will maker’s wishes
• An Executor must be over 18 and note it is not a
legal requirement but it is desirable
• Family, friend, accountant, solicitor, trustee
company

24. Appointing an Executor
• First instinct is to appoint a trusted friend or a family member
• Facts and figures are the easy part, it’s often the emotional and
personal side of an estate that can become the most difficult to
manage
• If a friend is appointed and they are the same age as the Will
maker – will the friend be able to act or even be alive to do so?
• Sole/Co/Alternate Executors

25. Standard Estate Administration Timeline*
*Timeline estimations may be extended due to any family law challenges, litigation or unforseen circumstances.
TFM lodgements or notices of intention to claim may delay our ability to make interim or final distributions
Month 1
Beneficiary relationship
established & information collated
Commencement
Month 2-3
Assets and liabilities
identified and quantified
Assets & Liabilities
established
Month 4-9
Collection & sale of Assets,
Payment of Debts
Estate Collected
Month 3-4
Relevant State Court grants probate
– Establishes right to administer
- Internal Trust(s) establishment
process initiated prior to TFM expiry
Probate granted
State Testator Family Maintenance (TFM) Legislation
varies as follows:
VIC/SA/WA
6 months from grant of probate
NSW
12 months from date of death unless notice of intention to distribute is
given in which case it is 6 months
QLD
6 months from date of death or 9 months if intention to claim notified
TAS
3 months from date of probate
ACT/NT
12 months from date of probate
Month 9-10
Period in which will can
be challenged expires.
TFM Period expires*
Month 10
Early distribution possible with
reserving for tax and fee liabilities
Potential Interim distribution
Month 11-12
Final distributions made
and Estate finalised
Tax & finalisation

26. Benefits of a Trustee Company as Executor
• More than 120 years of experience in estate administration
• Always be there
• Independence, no emotional motivations/involvement
• Higher duty of care/standard of care than a lay executor
• Efficient, experienced processes with checks and balances
• Legal, tax, and financial expertise to deal with all aspects of estate
• Empathetic to assist families in a time of need
• Role of trustee of ongoing trusts, trust managers

27. Estate Planning Checklist
Actions to Take
Ye
s
No
Ye
s
No
Do you have a Will? Do you have life insurance?
Can you find it? Do you require a Testamentary Trust?
Has your family situation changed since creating your
Will?
Do you have a Binding Death Benefit Nomination (BDBN) in
place?
Do you have a blended family? Was your BDBN executed correctly?
Since creating your Will, have you bought or sold
property?
Has your BDBN lapsed?
Do you have children who will require a guardian?
Are your Executors still appropriate (alive/capable/still
friends?)
Have you appointed appropriate guardians for your kids? Have you appointed an appropriate Financial POA?
Do you have a beneficiary with special needs? Do you want to make a gift to charity?
Are your dependants at risk of bankruptcy or divorce? Do you have particular instructions in for your funeral?
*Red boxes indicate potential need for a review of estate planning

28. Case Study

29. Estate Planning Case Study:
Estate Administration and Family Disputes

30. Estate Planning Case Study:
Estate Administration and Family Disputes
Greg and Jasmine had two children, Percy and Emily.
Emily is an accountant and is very stable and financially savvy. Percy has had issues throughout his
life with gambling and addiction. He has rising debts and is under a lot of financial pressure.
Greg and Jasmine both passed away in a car accident. They had valid Wills in place which had
appointed Emily as the sole executor. They had both left all of their assets to be shared equally
between the two children.
Emily begins working through the estate administration process. She applies for probate, calls in the
estate assets, arranges for property to be secured and insured, organises for any outstanding debts to
be paid and completes the final tax obligations for her parents. This is a very time-consuming and
difficult process which, on top of her regular work and family responsibilities, is hard for Emily to
manage. The estate administration process is therefore delayed.

31. Estate Planning Case Study:
Estate Administration and Family Disputes
Percy would like access to his inheritance as a matter of urgency as he has interest accruing on a
number of debts and he is being hassled by creditors for overdue amounts payable. He puts pressure
on Emily to “give me my money!”
Emily responds to Percy that she is unable to legally distribute any estate assets until the expiration of
the Testator Family Maintenance Period which in Victoria is 6 months from the date of probate. This
further delay angers Percy who accuses Emily of stealing his inheritance. The siblings argue and their
relationship deteriorates.
If Greg and Jasmine had of appointed Equity Trustees as their Executor they could be sure that the
estate would be administered in a timely and professional manner. Furthermore, having an
independent third-party managing the process would help to prevent family disputes as all
beneficiaries are treated equally. Preserving family harmony during these difficult times is a priority for
us and our clients.

32. Questions?

33. Contact your Adviser if you:
• Have any questions
• Would like to know more about our services and fees
• Need to organise an estate planning meeting
Next Steps

34. Disclaimer
This document is current as at 28 February 2017
Estate planning services are provided by EQT Legal Services Pty Ltd (ABN 32 611 391 149) and
Estate and Trust Administration together with Executor Services are provided by Equity Trustees
Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975. Both companies are part of the EQT
Holdings Limited (ABN 22 607 797 615) group of companies, listed on the Australian Securities
Exchange (ASX:EQT).
This information is intended as a source of information only. No reader should act on any matter
without first obtaining professional advice which takes into account an individual’s specific
objectives, financial situation and needs.
Copyright © 2017 Equity Trustees, All rights reserved.

35. Questions and answers

36. | Bridgeport36
This webinar and information has been prepared and issued by Equity Trustees Limited (Equity Trustees) ABN 46 004 031
298 AFSL 240975. It contains factual information and general financial product advice only and has been prepared without
taking into account the objectives, financial situation or needs of any individual. The information provided is not intended to
be a substitute for professional financial product advice and you should determine its appropriateness having regard to
your particular circumstances. Before deciding whether to acquire, dispose of, or to continue to hold an investment in any
particular financial product, you should obtain and consider the relevant disclosure document.
Bridgeport Financial Services Pty Ltd (Bridgeport) is a Corporate Authorised Representative of Australian Planning
Services Pty Ltd (APS) ABN 55 010 521 810 AFSL 225982. Bridgeport is registered with ASIC 343723. Bridgeport has
partnered with Equity Trustees to deliver this webinar.
While all care has been taken in the preparation of this webinar (using sources believed to be reliable and accurate), no
person, including Equity Trustees, Bridgeport, or APS, accepts responsibility for any loss suffered by any person arising
from reliance on this information.
Thank you
Webinar: Estate planning masterclass