Article by Manny Wood published in the Coffs Coast News Of The Area on 7 April 2023.
Jack and Jill each have two children to previous relationships. They have been married for 10 years and are concerned about their estate planning.
Their primary concern is that they want to make proper provision for each other but they also wish to ensure that their respective childrens’ inheritance is protected.
They seek specialist advice.
The solicitor explains that if they make “simple” wills, leaving their whole estate to each other, with all four children receiving a share of the survivor’s estate, that there is a risk that the survivor could change their will or enter into another relationship, which could lead to some of the children missing-out.
On the basis that Jack and Jill’s primary asset is their jointly owned matrimonial home, the solicitor recommends that they consider “severing the joint tenancy” so that each of them hold a 50% share of their home as “tenants in common” and that their wills create “flexible life interests” allowing their surviving spouse to be provided with appropriate accommodation.
The solicitor explains that under this type of will, the surviving spouse would be responsible for the payment of rates, insurance and the maintenance of the home.
If the surviving spouse wishes to relocate, the proposed will also creates options which include purchasing another property, acquiring a right to reside in a retirement village or nursing home, or renting out the matrimonial home and paying the surviving spouse the rental income.
The solicitor explains the importance of choosing the right executors to give effect to their wishes, which includes providing appropriate accommodation for the surviving spouse whilst also preserving the capital of the residence for the respective sides of the family.
The solicitor also addresses Jack and Jill’s superannuation and life insurance and the importance of executing powers of attorney that also address the spouse’s ability to occupy the matrimonial home.
Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487. This column is only accurate at today’s date and cannot be relied upon as legal advice.
