Families come in all shapes and sizes and your family dynamic can affect how you might consider your estate planning. If you are in a blended family, this blog article considers some of the issues you may have to consider when looking at your Will.

Who should my executor be?

Your executor will be responsible for the administration of your estate once you have passed away. Who you choose to nominate as your executor will depend on your personal circumstances.

Your executor should be someone your trust, and someone you feel is equipped to deal with the challenges of managing your estate which may include (in some circumstances) a claim being made against your Will.

If a claim is made against your Will, your executor will be a point of contact for beneficiaries and the claimant. 

Is there a risk that my Will will be challenged?

When preparing your Will, it is important to seek legal advice, especially if you are in a blended family. 

To make informed decisions regarding your Will, the structure of your family tree, step-children, marital status and your current assets and liabilities are all important factors to consider.

For example, a married couple, with children from previous relationships will be considered at law the children and step-children of the couple and all are equally able to challenge both spouses Wills as a child, or step-child.

What type of Will is appropriate for my circumstances?

Generally speaking, there are two types of Wills:

1. A standard Will – this is a Will where your beneficiaries will receive their inheritance personally.
2. A testamentary trust Will – this is a Will where your beneficiaries can establish a trust for their inheritance. A testamentary trust will provide your beneficiaries with benefits in relation to asset protection and the ability to minimise their tax.

The type of Will that may be suitable for your circumstances will depend on your income, assets and liabilities and also the level of any life insurance you may have.

What assets will form my estate?

When considering your Will, it is important to have a clear understanding of what assets will form part of your estate.

Common assets that do not form part of your estate including:

• Joint assets – joint assets are assets that you own jointly with another person or persons. In the case of property owned as joint tenants, the right of survivorship applies. This means that upon your passing, your interest in the property will automatically revert to the surviving owner. The right of survivorship also applies to bank accounts or shares held by two or more people jointly.

• Superannuation – superannuation does not automatically form part of your estate. As part of your estate planning, you should consider signing a Binding Death Benefit Nomination. Such a nomination will allow you to nominate a dependent beneficiary or alternatively, your legal personal representative. If you nominate the latter, your superannuation upon death will form part of your estate and will be distributed pursuant to your Will.

In a blended family, there are many factors to consider when looking at your estate planning. It is important to seek advice on these factors to ensure you are informed when making your Will. If you have any questions or would like assistance with preparing your estate planning, please contact us.