Estate Planning

As life becomes more complicated it is more important than ever to ensure that clients receive comprehensive estate planning advice that caters for their needs and those of their families.
WHY TEECE HODGSON & WARD? Teece Hodgson & Ward is one of the leading estate planning law firms in New South Wales. No other firm has more accredited specialists in the field. We can help your clients to review their current arrangements and recommend appropriate structures and practical solutions. We aim to ensure that the client has a well thought out, comprehensive strategy which achieves their objectives. WHAT IS GOOD ESTATE PLANNING? Good estate planning is much more than just putting in place a Will and reviewing it every 10 or 15 years. It requires a holistic approach and recognition that a clients needs, risks and circumstance will develop over time. Many clients now also wish to cater for their lifetime needs, in addition to the more familiar estate planning issues of who they want their estate to pass to following their death. Important estate planning issues which should be considered include: enduring powers of attorney - ensuring that a clients financial during affairs can of be managed unexpected HOW COMPLICATED SHOULD IT BE? There is no need to complicate a clients estate planning unless it is either necessary or beneficial to do so. However, our experience is that many clients are not aware of the issues which can arise. Modern wealth structures and changing family relationships mean that it is not uncommon for an uncomplicated client to: have multiple professional advisers for their tax, investment and accountancy needs; of enduring guardians be involved in a family business, partnership or private company; binding / non-binding death nominations ensuring that clients can effectively nominate beneficiaries to receive death benefits from a superannuation fund; memorandums of wishes - setting out a clients intentions and preferences to ensure that trustees are aware of the immediate and long term needs of particular beneficiaries (such as young children or vulnerable persons); retirement planning - including planning for future residential and care needs; appropriate investment structuring to reduce asset protection risks, meet important long-term objectives and legitimately minimise exposure to tax.

estate planning

efficiently incapacity;

periods

appointments

giving clients greater control over lifestyle decisions which might be made on a clients behalf during periods of incapacity; advance care directives - giving the client an opportunity to express their wishes and

there is no need to complicate a clients estate planning unless it is either necessary or beneficial to do so

preferences for medical treatment should they become seriously ill or incapacitated; lifetime trusts - if clients wish to make lifetime provision for beneficiaries with specific needs;

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hold assets in or be a beneficiary of a family or testamentary trust;

circumstances, rather than providing a packaged, one size fits all, solution. As with all good adviser / client relationships this process is very much a two-way process. It is based on openness and a clear understanding of the clients goals, the strategies to be used to achieve those goals and the steps we need to take together to make it all

be a director of a company or be engaged in a business or occupation which results in

estate planning

exposure to financial risk; own shares in a private company; have significant superannuation assets in a public fund or a self-managed super fund or a combination of both; own property including both a main residence and investment properties; have geared assets or other liabilities which require ongoing income streams to maintain them; have partners or family members who are financially dependent on them. Factors like these can have a significant impact on how estate planning is structured. Given such complexities, the traditional simple Will appointing the surviving spouse as the sole executor and beneficiary is no longer adequate for many clients.

work. In our experience, the estate planning process is likely to involve the following stages:

STAGE 1 Following the initial introduction we will provide a prospective client with our terms of engagement which will include an estimate of our costs for dealing with stage 1. We also provide our estate planning questionnaire together with introductory guides to certain key estate planning issues if appropriate. Obtaining comprehensive information at the outset helps us recommend a comprehensive plan more quickly and can reduce the costs to the client. Clients also find the questionnaire a useful trigger for a range of issues that they may wish to discuss when we first meet.

the as

traditional the sole is

simple executor no

Will and

This first stage is crucial in understanding a clients needs and confirming what a clients estate actually consists of. Many assets, such as (a) a potential interest in a family trust, (b) company assets or (c) superannuation death benefits; are not actually assets which directly form part of the clients estate and they may need to be controlled indirectly through, for example, (a) the trusteeship of a trust, (b) the

appointing the surviving spouse beneficiary longer

adequate for many clients

ROUNDED APPROACH Estate planning requires a careful consideration of many factors including potential claims against a clients estate. Given the firms expertise in estate litigation we can also advise on the likely prospects of challenges to a clients estate structure. In addition we can advise on structures which reduce the risks of those claims being successful and in many cases prevent claims from arising in the first place.

directorship or shareholding of a company and (c) the trusteeship of a super fund or using a binding death nomination. If appropriate we also provide a diagrammatic outline of the current estate planning structures with an emphasis on beneficial interests, control mechanisms and

underlying value. We find that this enables clients to gain a clear understanding of their current structures which in turn allows them to make informed decisions.

as with all good adviser / client relationships this process is very much a two-way process

HOW DO WE APPROACH ESTATE PLANNING? We believe in a personalised approach tailoring our advice and recommendations to each clients specific

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Once we have reviewed a clients current assets, liabilities and estate structures and any related entities, we then have a detailed conference with the client. The purpose of the conference is to ensure that we understand the clients key objectives and requirements and to ensure they are making fully informed decisions, based on an understanding of the broad range of options available to them to meet their particular needs. We then follow up with a letter of advice to the client. That letter will usually set out the various options available together with our recommendations and provide an estimate of costs for implementing the resulting structures. At this stage we will raise an interim invoice for work done to date and advise on an estimate for drafting the necessary documents.

MORE INFORMATION Copies of our estate planning questionnaire and estate planning guides can be downloaded from the resources section of our website www.teece.com.au.

estate planning

HOW CAN TEECE HODGSON & WARD ASSIST? If you require further information or advice concerning your estate planning please contact Richard Neal, Deborah Linwood or John Maitland using the following contact details: mail@teece.com.au 02 9232 3733 Level 10, 1 Chifley Square Sydney NSW 2000
This outline is intended to provide general information about current legal issues. It is not intended to be comprehensive or to provide any specific legal and / or tax advice and should not be acted or relied upon as doing so. Professional advice appropriate to a specific situation should always be obtained. DATED October 2009

we believe in a personalised approach tailoring our advice and recommendations to each clients specific circumstances, rather solution
STAGE 2 Subject to further instructions we will then draft the documents necessary to implement the agreed estate planning structure and report to the client again with a letter of advice. At this stage we raise an interim invoice given the client may wish to take some time reviewing the

than

providing

packaged, one size fits all,

documentation.

STAGE 3 If further instructions are received we then prepare the final documentation and then arrange a conference with the client to review the matter to date, confirm their instructions, approve and sign the documents. This final stage includes reporting to the client to confirm storage instructions, provide a bound set of the documents and raise any further recommendations relating to their ongoing estate planning. At this stage we will provide a final invoice.

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estate planning

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