Estate planning for couples in second relationships
Are you in a second relationship and in the midst of estate planning?
Many people these days have “competing interests” when it comes to their estate. In these scenarios, we will consider an older couple that does not have children together. The husband wants to provide for his new wife in his Will while leaving the bulk of his assets to his children.
Scenario One: Brian and Grace, and Jane and Rob
Scenario: Brian married Grace a few years ago. He has two adult children from his first marriage, Jane and Rob. Brian is having his Will done.
What’s the issue? Brian wants to make sure he leaves a home for Grace to live in, but also wants to make sure the bulk of his assets are left to Jane and Rob.
Solution: Brian can choose to give Grace a Right to Occupy the home for her lifetime. When she dies the home will pass to his children, Jane and Rob.
Scenario Two: But what if Grace needs to move into a retirement home or aged care facility?
Scenario: Brian’s home is not only quite large, it is double-storey.
What’s the issue? Brian is worried that Grace may get to the point where she can no longer manage living in the home alone.
Solution: The ‘Right to Occupy’ for Grace can be drafted so that the home can be sold to pay for a smaller, more suitable place, or can be used to pay for the bond at a retirement village or aged care facility.
Scenario Three: Who pays the outgoings?
Scenario: Brian understands that giving Grace a home to live in is a great solution but he starts to think about the rates and repairs and maintenance. What if the hot water service needs replacing? Who pays for that?
What’s the issue? While Brian thinks that Grace could pay for the rates he doesn’t believe she should pay for capital items.
Solution: The Will can be drafted to cater for these requirements. Each case needs individual estate planning advice of course, in order to avoid a challenge.
Proper estate planning now allows you to protect your assets and loved ones when you no longer can.
Need help with estate planning? Call Acvisory to discuss any needs and concerns you have.
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.