Family Dynamics Shaping the Estate Plan - 5 program recorded highlight series

Program 1: Keeping it all in the Family…but which Family? Creative Estate Planning Solutions for Blended Families

Estate planning for blended families comes with additional complexities, particularly when navigating significant age gaps between spouses or children from former relationships. It is unsurprising therefore that many contested estate claims occur in the context of blended families when the life stages and needs of family members from different families of the testator differ. To help manage competing beneficiary interests in the estate plan of blended families, this session examines:

• Common strategies within blended families and the advantages, disadvantages and issues that can arise with each, including mirror wills, mutual wills, and life interests
• How to determine what is adequate and proper provision to each beneficiary, depending on their needs and relationship with the will-maker and beneficiary, along with the size of the estate
• Potential alternative strategies including life insurance, use of superannuation proceeds, child pension and trusts to fund lifestyle, property, education for younger children etc
• How to ensure the second spouse is looked after when of similar age to adult children
• Lessons from recent cases
• Practical examples

Session 2: When Family Law and Estate Planning Collide - Planning with Both in Mind

The power of the family courts is significant and its reach wide. Understanding just how the family court deals with inheritances, binding financial agreements, interests in trusts and superannuation assets is absolutely critical for any estate planning practitioner to ensure estate planning structures are not inadvertently undone by family law litigation down the track. This session examines:

• The definition of property vs a financial interest in family law and how this impacts how the family court deals with inheritances, interests in trusts (fixed vs discretionary), testamentary vs inter vivos, superannuation, and equitable interests
• The powers of the family court to deal with attempts to “quarantine” assets, including setting aside and clawing back assets intended to defeat family law claims
• The requirements for a BFA, what they can include, when are they enforceable, grounds for setting aside and the value they can have in an estate planning context, even if not enforced
• Lessons for practitioners arising from recent decisions

Program 3: Structuring the Estate to Protect Vulnerable Beneficiaries

People come in all shapes and sizes and each with varying needs. For an estate planner, understanding the options available to protect vulnerable beneficiaries is central to providing a valuable estate planning service focused to the needs of your individual clients. There are many specific types of vulnerabilities family members may face and a range of additional supports they may require for their lifetime once the testator has passed. To assist estate planners consider which vehicle may be suitable for specific clients, this session examines:

• The common vulnerabilities and types of disability that require special consideration (e.g. physical, intellectual/developmental disability, substance abuse, harmful behavioural addictions, poor financial management etc) and the types of support which may be needed
• The options available to provide for each type of need and the circumstances in which an option may be appropriate, including special disability trusts
• Practical issues which need to be addressed as part of planning, including ability to move assets exempt of duty and CGT, preserving entitlements to NDIS and social security benefits, identifying and quantifying future financial needs and appropriate control mechanisms etc) and how best to develop and communicate plans with relevant family members
• The extent to which a testator can validly exert control over beneficiary behaviour and/or use of funds after death in light of recent cases including Mead & Lemon

Program 4: Interim Distributions in Estate Planning: When Beneficiaries Want Their Money Now

It is easy to talk about 'managing client expectations' but once the application for probate is filed, administering a deceased estate can be a lot like sitting in the doldrums after a large storm.  After the initial flurry of arranging the funeral and finding the will there comes a period of relative calm as the trauma of death is dealt with.  As the trauma subsides, an equally powerful feeling arises: where's my money?!  The beneficiaries often begin thinking of the executor as the goose sitting on their golden egg.  What's taking so long?  Why can't we have our money now?  But you were granted probate, what's the hold up?  This session will cover:

• Legal considerations and requirements for making interim distributions
• The risks to the executor of making interim distributions
• Tips for smooth and efficient interim distribution processes
• Strategies for managing beneficiaries’ expectations
• Case studies: lessons from real-world examples

Program 5: Knowing When to Continue (and When to Cease) Acting for the Estate Across the Generations

Like most professions, estate planners are heavily reliant on referrals through word of mouth. Having a good rapport and working relationship with a client and their family often leads to requests to act or advise other members of the client’s family. While referrals can be a successful and sound business practice, they can lead to the ethical dilemmas for estate planners, particularly when they have acted for, or been involved professionally with, a family across multiple generations. A good estate planner is one who understands their ethical obligations. Being able to identify an ethical conflict and knowing when to continue acting (with appropriate safeguards) and when to cease acting is key. This session will:

• Summarise the ethical obligations which are enlivened in an estate planning practice, including confidentiality, bias, conflict of interest
• Explore the ethical issues that arise for estate planners when assisting successive or multiple generations of a family (i.e. what the estate planner knows about the next generation of family members, maintaining confidentiality, identifying potential conflicts etc);
• Discuss the practical issues that can arise when an estate planner is appointed in specific roles for the estate (including payment for services rendered, retirement of professional, prohibition in professional firm on taking on such roles etc);
• Share tips for managing potential issues involved with clearly identifying your client
• Look at disciplinary cases in an estate planning context where breaches of duty were found