Angela Ehsani

Australian Unity Trustees Limited has reinforced its commitment to partnerships in Australia’s legal sector with the appointment of Ms Angela Ehsani as National Manager, Legal Partnerships.

Based in Sydney, Ms Ehsani will lead the growth of Australian Unity Trustees’s national network of personal injury and succession lawyers, create mutually beneficial channel partnerships and raise awareness for Australian Unity Trustees’ services in the sector.

An experienced lawyer and finance industry professional with a background in insurance law and commercial litigation, Ms Ehsani has served in legal advisory and corporate development roles at firms including Clayton Utz, Lander & Rogers and most recently AMP Advice as head of its Law Sector business. Skilled in relationship management and lead generation, Ms Ehsani’s 15 year career has seen her lead the delivery of partnership strategies and create large legal  stakeholder networks across the eastern seaboard.

Australian Unity Trustees’ approach to partnerships focuses on delivering mutually beneficial referrals and placing client wellbeing first. Its Partnerships team  work alongside personal injury and succession law practices to ensure their clients’ seamless transition to trustee services, enabling law partners to focus on delivering a holistic service.

Ms Alex Madsen, Australian Unity’s Executive General Manager, Trustees, said Ms Ehsani’s large professional network and partnerships expertise will enable Australian Unity Trustees to deliver solutions that benefit law firms and their clients.

“As a wellbeing company and trusted mutual, Australian Unity Trustees is the ideal partner to deliver trust management, financial attorney and administration services to the clients of Australia’s personal injury and succession law firms. Angela’s legal experience and strong network of personal injury and succession lawyers built in her previous roles will be highly valuable as we raise awareness for our offering and seek partnerships that ultimately benefit Australians.” Madsen said.

Ms Ehsani said she is pleased to join Australian Unity Trustees and support its objective to help Australians protect and administer assets in-line with their wishes.

“I’m proud to join Australian Unity Trustees, a company focused on the wellbeing of Australians and their loved ones.”

“By expanding our partnership network in the legal sector and raising greater awareness for our services, we hope to create longstanding and trusted referral partnerships that benefit clients.”

Ms Ehsani has a Bachelor of Laws, Bachelor of Business and a Graduate Certificate of Legal Practice from Sydney’s University of Technology.

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Anna Hacker

The recent case involving the estate of American soul music legend Aretha Franklin highlights the importance of ensuring all family members–especially the sick and elderly–are aware of the details of their Will, says Australian Unity Trustees’ National Manager of Estate Planning, Anna Hacker.

Ms Hacker says too many Australians apply a “set and forget” approach to the contents of their Wills and instead need to be conducting regular reviews, often with relevant family members.

In the case of the estate of Aretha Franklin, despite an agreement to leave control of her estate to a relative, Sabrina Owens, a handwritten Will discovered under cushions in her Detroit home could instead see Franklin’s son, Kecalf Franklin, serve as the executor. The matter remains before the courts, with a judge determining whether the handwritten note, which contradicts the formal Will, is the late singer’s handwriting.

According to Ms Hacker, the situation in the Aretha Franklin case is sadly not uncommon, and a number of recent Australian examples highlight the need for routine assessing of Wills and for the testator of the Will to inform any beneficiaries of their involvement.

“It’s understandably not the nicest of conversations to be having with loved ones but it does ensure that everyone involved is aware of their responsibilities and the specifics of what they are – and aren’t – legally going to inherit.

“We see far too many cases where the testator of the Will either hasn’t formally executed the intended Will so as to make it a valid Will, or has perhaps changed their mind regarding the distributions in a Will and hasn’t advised family members accordingly.

“It’s already an emotionally draining time for all involved, so it’s recommended that testators manage any fallout by keeping their Will up to date and letting the relevant parties know of any changes, if it is appropriate to update beneficiaries,” she said.

Ms Hacker cites one case involving an informal Will application in which the testator had previously had a formal Will prepared and understood the formalities. She then prepared a document which contained some testamentary intentions but kept attempting to meet with a lawyer to have a new Will prepared. The format of the informal document was similar to that of a Will but it did not appoint an executor. At the same time as she prepared the informal document, she engaged with a funeral director to organise a funeral plan and notified the funeral planner that a solicitor would be her executor. The solicitor however was not made aware of this.

“The Court finding was that this was an informal Will on the basis that she had written it in a more formal way, she dealt with her assets, and there was an intention for it to be a final Will,” Ms Hacker said.

Another example involved an informal Will application in which the testator had written a formal Will a number of years ago which divided her estate between various charities . A later informal document was found among bills in the testator’s kitchen after she passed away.

The informal document purported to give her property to family and then make other various gifts.

“In delivering its judgement, the Court found that the document was not intended as being her last Will and so was not admitted to Probate.”

Ms Hacker said with both of these cases, and others like it, the time, expense and angst could have been avoided with some simple planning.

“The basic premise of a Will is to legally grant the expressed wishes of those who pass away, so in order for this to be as effective and straight-forward as possible, people really need to be diligent with regularly updating the Will document and notifying those most affected – their loved ones,” she said.

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Anna Hacker

(Warning – spoilers ahead)

While the decision about who will sit on the Iron Throne has been well and truly decided in the Game of Thrones (GOT) finale, the estate planning considerations for the various players in the game are not so clear cut, says Anna Hacker, accredited wills and estate specialist with Australian Unity Trustees.

GOT raises some note-worthy points of law about intestacy – that is, how the estates will be distributed if there is no Will, she says.

“Intestacy laws are different from state to state, so it may mean that there are differences between Westeros and Australia, but assuming the laws are similar to those at play in Victoria, there are some interesting estate planning implications.

“From an intestacy point of view, we can assume that Catelyn Stark inherited all on the death of her husband Eddard Stark’s through joint ownership of assets. If the assets were not jointly held, the massacre at the Red Wedding where Catelyn, her eldest son and his wife and unborn child were murdered, would present complications,” Ms Hacker says.

Some lessons for those of us without a Will not living (or dying) in Westeros include:

The 30 day rule

“Generally, if people pass away at the same time, it is presumed that the older one passes away first. In the case of Catelyn and her son Rob, he did not inherit as he needed to survive his parent (Catelyn) by 30 days. The same applies for Rob’s wife and unborn child in relation to his estate,” Ms Hacker says.

“Consequently, when Catelyn passed away, if there was no Will in place, her surviving children – Sansa, Arya, Bran and Rickon – divide her estate between them.”

Estate claims

However, there is always the case of Jon Snow to consider, who may be able to make a claim as the illegitimate son of her husband.

Ms Hacker says Jon could have challenged the distribution from Catelyn’s estate to the other children, as he could say he was a step-child to Catelyn, and a member of the household. Interestingly, as she appeared never to accept him as a step-child, this may have impacted on his ability to challenge.

“However, considering that we later found out he was Catelyn’s nephew by marriage, his claim would be more difficult, at least in Victoria, due to the limits of the categories of possible claimants, of which nephews are not included (but possibly, a member of the household would be, depending on the circumstances).”

When minors inherit

“When the Stark children inherited Catelyn’s estate, it would probably have been held in trust for them until they reached the age of 18 years.

“Perhaps Little Finger would been a suitable “Master of Coin” for the Stark children, although whether he would have been an appropriate independent trustee is another question. A better alternative would be for an independent trustee company – such as Australian Unity Trustees – to step in with this situation.

“When the youngest son, Rickon Stark, later passed away, his portion on the inheritance, which would have still been held in trust, would have gone to his siblings.”

Missing, presumed dead

The situation when some of the Stark children were away from home, and presumed dead, can give rise to the need to deal with their assets so that they are not diminished or negatively impacted. This can either be as a legal administrator presuming they are still alive, or as an administrator of their estate if they have passed away.

“In Victoria, a missing person can be declared dead after a period of seven years has passed, or earlier if investigated by the Coroner.

“In the case of Brandon and Rickon Stark it initially looked as though they had died so it is unlikely that they would have inherited from their mother’s estate, and if they did, their inheritance would be distributed to the other siblings.

“In the case of Arya Stark, who was just missing, it would have been more difficult to prove she had died, so she would have still inherited.”

Inheritance through marriage and the forfeiture rule

“Sansa would have technically inherited from her husband Ramsay Bolton when he died (unless he had a Will in place). Although with the forfeiture rule, you cannot inherit if you are convicted of killing the person. So if convicted of setting the dogs on Ramsay Bolton, technically, she wouldn’t inherit.”

Ms Hacker says Jon Snow shouldn’t feel hard done by if he did miss out on a share of the Stark estate however, as there is the estate of his own family – the Targaryens – to consider.

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Emma Sakellaris

The end of financial year contains a tax sting for many and – combined with a desire to give to causes that make a difference to our communities – can be a trigger for philanthropy and charitable giving.

Recent ATO statistics confirm that Australia continues to be a charitable nation – with Australians donating $3.5 billion in total, with an average donation amount of $770^* – it is an issue close to the hearts – and wallets – of taxpayers.

But it is important to do it right, including ensuring that your donation is received by the charity by June 30, says Emma Sakellaris, executive general manager of Australian Unity Trustees.

“With June 30 falling on a Sunday this year it is very important that donations, for which the individual is seeking a tax deduction, are made well in advance of the end of the financial year.

“It is also critical to ensure that the charity has a deductible gift recipient (DGR) status, if you are seeking a tax deduction for the donation.

“While it depends on each individual’s tax position, generally speaking it is possible to receive a tax benefit for a donation of greater than $2 made to a DGR recipient. Individuals who donate by June 30 lock in a tax deduction for their tax return, while also contributing to the work and contribution of the charity of their choice.”

Whilst tax considerations are often a ‘giving trigger’ and the reason why many people make one off donations, milestones such as the sale of a business; receipt of an inheritance; or even a lottery win or similar, also often inspire individuals to consider establishing an ongoing, structured philanthropy legacy, Ms Sakellaris says.

“The intergenerational wealth shift has well and truly commenced in Australia, as the population ages, individuals sell their family homes to transition to independent living, often meaning there is significant funds to establish a family legacy and to ‘give back’ to their communities.

“Individuals selling sizeable family businesses are also keen to establish a family legacy, utilise available tax deductions and also, as they transition to retirement, establish an ongoing purpose and connection to their communities.

“As a result of this wealth we have an increase in the number of charitable foundations being established.

“A sub-fund in a charitable trust can be established with an initial donation of $20,000, and the tax deduction from the initial donation can be spread over five years, while all subsequent donations made to the trust are tax deductible. 

“For those who have a more substantial amount to invest – perhaps from a windfall or from the sale of a business – a private ancillary fund (PAF) is an option. As this structure is a stand-alone charitable trust, an initial donation of at least $300,000 is required in order to generate the income required for granting and overall management costs.

“This structure has the advantage of providing individuals with greater involvement with regard to investment decisions and other governance requirements.  Again, donations are tax deductible and income generated is tax exempt.

“PAFs can bring significant charitable value into perpetuity and provide a sense of purpose and family connection across multiple generations, into the future,” Ms Sakellaris says.

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In the role Ms Fenemor will be responsible for managing Australian Unity Trustees’ relationships with key business partners nationally, and continuing to increase the awareness of the value the business can provide to advisers and their clients, across multiple generations.

Sally has over 15 years of experience across financial services, healthcare and trustee industries.  Most recently Sally held the role of national business development manager at Equity Trustees.  In this senior role she managed a national team of Business Development Managers, partnering with solicitors, financial advisers, private bankers and their clients to assist with the preservation, protection, growth and inter-generational management of their wealth.

Ms Fenemor has a degree in business (marketing) from Monash University.

She is based in Melbourne and will report to Emma Sakellaris, executive general manager of Australian Unity Trustees.

Ms Sakellaris said Ms Fenemor brings considerable and diverse experience that will be invaluable as Australian Unity Trustees further builds on its relationship with key business partners. 

“Two key areas of strategic growth for Australian Unity Trustees are philanthropy and estate planning and Sally will focus on both, as she builds and maintains relationships with lawyers, financial advisers, private bankers, HNW clients and associated organisations and family offices.

“Sally will work closely with staff in the Trustees business – as well as across the Australian Unity group – as she further elevates the business profile.”

Ms Fenemor says she is looking forward to working in a role where she can make a real difference in the lives of Australian Unity Trustees’ clients, in partnership with the business’s national referral network.

“I am joining the business at an exciting time in its development, and will be part of a team that already has a wealth of experience and expertise in trustee services and solutions.

“The trustee space is my passion, and Australian Unity Trustees has a number of points of differentiation, including being part of a mutual organisation. This allows it to be absolutely and genuinely client and member focused,” she said

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Anna Hacker

There has been an increasing number of disputes following the death of a family member, in large part because people didn’t communicate what they planned to do with their assets as well as what they wanted to happen to their remains, says Anna Hacker, Wills & Estates Accredited Specialist at Australian Unity Trustees.

“It’s a particular issue for women as they tend to outlive their spouse and also take on the lion’s share of caring for elderly family members,” Ms Hacker says.

“Communicating what you want to happen to your remains after you die may sound like an awkward conversation to have, but it’s important that people start having these discussions with their loved ones and not delay the conversation until it is too late.

“In Australia, we have become protected from the reality of death compared to other cultures, and talking about Wills and funerals is not always encouraged.  However this can give rise to significant problems.

“It’s perhaps not the most common dinnertime conversation, but almost everyone has a strong view about what they would like to have happen to their remains after they die.

“For example, many people don’t like the thought of being buried at all, and would prefer to be cremated.  Others shudder at the thought of donating body parts to medicine or science.  It’s a very personal decision.”

Ms Hacker says that it is  a particular issue for women.

“In the first place, women usually outlive their spouses and, as a result, there may not be anyone left who knows what they want their funeral to be like.

“A common scenario might be someone who no longer holds the cultural or religious traditions they grew up with, and therefore no longer want to be buried according to particular rites.  But if their children don’t know this, they may assume their parent wanted a traditional funeral.

“Family members need to know how you would like to be farewelled, as well as details around your views on organ donation or keeping you alive through machines.

“It’s usually the case that daughters are the ones caring for elderly parents, and therefore shoulder the burden of making arrangements when their parents die.

“As a result, they might be the only ones who know about a parent’s wishes for their funeral, and end up trying to explain to other family members that their mother wished her ashes to be scattered at sea rather than, for example, buried next to their father.

“At an emotional time, this is not the kind of debate and disagreement that a family should be having.”

Ms Hacker said that Indigenous people are another group particularly likely to experience a funeral or burial dispute.

“Sometimes a person has rejected their Aboriginal heritage but other family members still abide by the traditions and expectations.  It can be very hard for surviving family members to accept that a loved one doesn’t want to be buried in the way that their heritage would usually require.”

Ms Hacker said that with the increasingly varied options available to people, it is likely there will be more and more disagreements.

“I’ve heard of people getting “commemorative tattoos”, where some of the cremation ashes are added to the tattoo ink, and we’ve probably all heard of people having their ashes shot into space.  Another option is an egg-shaped pod that holds a person’s ashes and can be buried below sapling trees.

“Again, it comes down to communication with family and loved ones.  While any directions left in a Will are not legally binding, ensuring that preferences are properly communicated offers the best chance of getting the send-off that you want,” Ms Hacker says.

She added that she is starting to see initiatives that encourage people to prepare for their own death in a rational and sensible way.

“In the US, there is a program called “Death Over Dinner” that helps people gather family members together to talk about what kind of care, and what kind of death, they want.  It has also been launched in Australia.

“These kinds of initiatives could go a long way towards breaking the trend we are seeing in Australia, of a growing number of family disputes ending up in court following the death of a loved one – which is almost always a lengthy, expensive and distressing experience,” Ms Hacker said.

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Emma Sakellaris

International Women’s Day is a timely reminder of the importance of women making choices at all stages of their life to plan for security, with statistics from the Council on the Ageing showing that for many women, homelessness, fear and poverty are what awaits them in their older age, says Emma Sakellaris, executive general manager of Australian Unity Trustees Limited.

“While the commentary around International Women’s Day is focused on the “Balance for Better” theme, a key objective for women is not seeking balance as a standalone goal.  Instead women should focus on making choices to support them living their most secure, fulfilling life possible, however long they live.

“Achieving balance is still extremely difficult for women.  Years spent out of the workforce to raise a family or care for other family members has contributed to lower superannuation fund balances, lower incidence of home ownership, and lower personal wealth overall to draw on in retirement.  Combined, this essentially equates to less choice for older women.

“In many ways it is no surprise that older women are sadly the fastest growing demographic among the homeless population in Australia,” Ms Sakellaris said.

She says that “choice” isn’t limited to the decisions of the moment.

“Rather, the choices made that put in place plans, protections and solutions for a future time or event, are so very critical to the empowerment and dignity of women as they age and become frailer and more vulnerable.

“Unfortunately, if people do not make choices while they have the capacity, others will make choices for them when they are no longer able to do so.

“Such decisions can impact where you live; the funds available to you for living expenses and the services you are able to access, whether at home or within a supported living facility.

“Many women do not have the opportunity to make choices, often thinking that they can depend on their family to ensure they are protected and cared for.

“However, again sadly, the dynamics of family relationships often mean women can be left isolated and highly vulnerable.

“Regardless of one’s family or friendship structure and perceived strength, it is important to appoint someone to manage financial affairs when you are no longer able to do so. This provides women with choice and fundamentally, the ability to achieve balance.

“The appointment can be a trusted friend or family member, or it could be a private trustee company.

“Both have advantages, although a trustee company, unlike an individual, will exist into perpetuity, and can help ensure you are able to live according to your wishes and preferences, whilst receiving support, care and protection.”

Ms Sakellaris says making choices about the future and who will protect and make decisions on one’s behalf if capacity is lost is not limited to any socioeconomic group.

“All women should be documenting their choices and ensuring they appoint someone, or an organisation such as a private trustee company, to ensure they are protected and cared for, and can then also achieve balance and security throughout their lives.”

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Emma Sakellaris

The growing number of Australians taking part in philanthropic activities has been highlighted by the findings of the latest CAF World Giving Index*, and are part of a trend towards individuals seeking to connect with charitable projects and initiatives, says Emma Sakellaris, executive general manager of Australian Unity Trustees Limited.

According to the CAF World Giving Index, Australia ranks second out of 146 countries when it comes to giving.

“We are seeing a clear shift from individuals preferring to contribute funds to a project or an organisation, to people wanting to genuinely emotionally connect into communities and initiatives,” Ms Sakellaris says.

“As part of this, the Index noted a global trend towards volunteering, with more people giving their time and expertise to causes while there has been a corresponding drop in the number of individuals donating money.

“In particular, there is a significant increase in the number of women seeking a greater emotional connection to projects and initiatives with charitable organisations and activities.”

Ms Sakellaris said there is a global shift regarding the impact women have through activities such as volunteering – not just time volunteering but also expertise volunteering.

“Often we see women who wish to start supporting particular causes, however they may not have the same capacity to significant grant funds during their lifetime.  In addition, we find that women are often not as influenced by incentives such as tax deductibility. 

“Instead, they are choosing to donate their time, expertise and energy to the causes that they feel most passionate about.

“It is evident that women seek a significantly greater emotional connection with charities and projects, so volunteering is often a logical commencement to establishing their philanthropic legacy.  Such women may then leave a significant charitable gift within their estate plan, in line with their areas of philanthropic focus during their lifetime. 

“We have also seen a gradual shift to ‘need based granting’ (assisting people who need to receive essentially the ‘basics’ – regular meals, accommodation, professional support services etc), which often includes human care, support and kindness and is not limited to the donation of funds.”

Ms Sakellaris said she is not surprised that Australia ranks highly in the Index, despite the common view that Australia doesn’t have a big philanthropic culture.

“A big part of the Australian culture is to help others – this is particularly evident through our increased willingness to support those in need of our support and kindness.

“I suggest our view of Australian philanthropy is somewhat impacted by the fact that we have significantly less ultra high net worth individuals making substantial grants and contributions in a highly visible manner, such as named buildings and scholarship programs, compared with, say, the US. 

“In Australia, philanthropy is not restricted to the domain of the ultra-wealthy, however as a result the individual contribution made by Australian philanthropists can be less visible.

“This doesn’t mean their contribution is less valuable, on the contrary, and the findings of the CAF report support this,” Ms Sakellaris says.

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Anna Hacker

Managing the debts in deceased estates is an increasingly complicated area for executors and family members to deal with, and it is important they are aware of their responsibilities and rights, says Anna Hacker, Wills & Estates Accredited Specialist at Australian Unity Trustees.

“In the past, it was fairly common for people, particularly elderly people, to die without any real debt – they would usually have paid off the mortgage, and they might not have a credit card, for example.

“However today, we are seeing people in retirement who still have a substantial mortgage and other forms of debt, and who are more likely to leave some debt behind for their executor to deal with.

“As a result, we are increasingly talking to people about debt in estate planning – both those who are creating an estate plan, as well as those who have been named as executor and need advice on managing the estate.”

Ms Hacker said that there are specific ways that debt must be treated when it is part of an estate.

“While it doesn’t have to be a complicated area if planned correctly, it can cause some headaches.

“For example, people need to be aware that if a property automatically transfers through to a beneficiary via a joint tenancy and the laws of survivorship, any debt on the property also transfers.  As a result, the beneficiary is suddenly left with the whole of the mortgage to pay and no recourse to the estate.

“So someone who might have planned to leave their house to one child and all their other assets to another child, believing these to be of equal value, may in fact be putting the first child into debt.

“To prevent this happening, they would need to include a direction in their Will for their executor to first pay off the mortgage out of the estate, so the property can be transferred free of duty or encumbrances.

“Another common misunderstanding is that life insurance will be automatically used to pay off debts.  Many Wills specify that certain forms of “property”, including life insurance policies, should not be used to pay off debt. If it is the intention of the Will-maker to do this, the Will must reflect this,” Ms Hacker said.

Another area of potential risk is if an executor is too hasty in distributing an estate.

“If the executor distributes the estate to beneficiaries too early, and there are still debts that must be met, the executor may need to cover those estate debts themselves.

“The role of executor is one of great responsibility and, while it can run smoothly, there is potential risk and concern, and small errors may result in significant stress and time.”

She said that to help avoid pitfalls with debt in estates, there are a few immediate steps that executors should take:

• Ascertain all assets and liabilities, including any utility or other bills that still need to be paid.  Also some debts, such as HECS, may not be required to be paid
• Contact the bank to advise them of the person’s death, so they can put a hold on any direct debits.  It’s also a good idea to keep the bank informed of progress in the estate
• Recognise what order to pay any debts or responsibilities.  For instance, paying for the funeral takes precedence over any other claim, and can even be done before probate.
• However a wake cannot be paid out of the estate.  Likewise a particular memorial – such as a ‘space burial’ where ashes are sent into space – can’t be paid for by the estate unless permitted by the Will or agreement is reached by the beneficiaries
• Understand what is inside the estate and what is outside – such as superannuation, and where the responsibility lies
• Appreciate the order of payment of debts – the first payment must be for the funeral expenses, then the testamentary expenses (ie: legal costs), then statutory obligations (ie: taxation) and only then are the actual debts of the person who passed away to be paid (eg: mortgage, credit card debt etc)
• Get good advice if there are any concerns or areas of uncertainty.

“Acting as executor for an estate should be fairly straight forward for most people but it can be a minefield if you don’t get advice at the right time,” Ms Hacker says.

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