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.

The post R*E*S*P*E*C*T: find out what it means for your Will appeared first on AdviserVoice.

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.

The post Game of Thrones finale throws up estate planning challenges appeared first on AdviserVoice.

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.

The post Funeral and property disputes impacting women appeared first on AdviserVoice.

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.

The post Debt ridden estates can cause challenges for executors appeared first on AdviserVoice.

Anna Hacker

With a myriad of statisticians now trying their hand at calculating when Facebook will have more dead “memorialised” members, than living ones, planning for the ownership of digital assets in your Will has never been more relevant, says Anna Hacker, national manager estate planning with Australian Unity Trustees.

“Possible years that have been mooted for when the Facebook accounts of the dead outnumber those of the living, range from the 2060s through to the 2130s, but with Facebook and other social media platforms skewing towards users in the younger demographic – chances are it will be an issue that becomes prevalent in the lifetimes of the current cohort of users.

“Essentially our Facebook pages, as well as our YouTube comments and other social media interactions, will live on after we die, a trend that will only increase as social media becomes more entrenched in our everyday lives.

“Ownership of digital assets is a difficult legal area, as legislation and the social media platforms themselves have struggled to keep up with developments, but it is nevertheless an area that should be considered in your estate planning.

“While the motivation of most is to ensure that their photos and precious memories are preserved on platforms such as Facebook and Instagram, people shouldn’t make the mistake of assuming that their digital estate is not valuable. Digital wallets such as PayPal can have amounts of money stored on them, internet domain names can have value and can sometimes be sold, and the musings of bloggers can even be a type of intellectual property.

“For investors in Bitcoin and other types of cryptocurrency such as Ethereum, Litecoin and Ripple, considering the value of their cryptocurrency – and what will happen to it if you die, can be an even bigger consideration.

“Cryptocurrency is not regulated in the way, that say, a bank account is. A bank will put a stop on your account when informed by an executor and account assets are considered in the probate process. This will not necessarily be the case with cryptocurrency accounts.

“Your estate plan needs to consider digital assets, and instructions left to the executor on locating and accessing these digital assets, to ensure they pass to your beneficiaries.”
“Earlier this year New South Wales became the first Australian jurisdiction to consider whether new laws are needed to specifically address what happens to social media assets after death, when NSW Attorney-General Mark Speakman referred the matter to the Law Reform Commission.

“This is a welcome development, but the findings are not expected to be released for at least 12 months. That doesn’t mean people need to wait until then to consider the place of digital assets in their Wills,” Ms Hacker said.

The post Digital graveyard complicates estate planning appeared first on AdviserVoice.

Anna Hacker

Say “estate planning” and most people think of a Will.  But while a Will is an extremely important document, the value and importance of having an Enduring Power of Attorney as part of an estate plan should not be overlooked, says Anna Hacker, Wills & Estates Accredited Specialist at Australian Unity Trustees.

“An Enduring Power of Attorney is the tool that can help protect people – particularly anyone who is vulnerable because of age or health problems ­– from those who are unscrupulous, greedy or neglectful,” Ms Hacker says.

She points out that it is vital to choose the right person for the role.

“We always advise people to carefully consider who they can trust, and not just to choose their oldest child, for example.

“It must be someone that you can rely on to do the right thing by you, make decisions that are in your best interests, and properly meet their obligations and responsibilities.  There are specific guidelines and regulations for people acting as Enduring Power of Attorney, and if they don’t meet them then they could be acting illegally.”

Ms Hacker said that while no-one would like to believe it could happen to them, there are many examples of adult children, or other family members or neighbours, acting dishonestly and taking advantage of elderly people.

“Elder abuse is becoming recognised as a serious issue in Australia, and having an Enduring Power of Attorney should be on everyone’s radar.

“It can happen to anyone, regardless of how much wealth they have, how strong they believe their family ties are, or how capable they think they or their nominated attorneys are.

“We have seen examples of sons or daughters taking their mother into the bank and getting them to withdraw large sums of money, and then hand it over for their own personal use.

“Having an Enduring Power of Attorney would add an extra layer of protection, as the attorney is then the only person the bank is authorised to deal with.  In addition, they would be monitoring bank statements and would be alert to any unauthorised or unusual activity.

“In other cases, we have seen adult children forcing their parents to take a mortgage out on their home and then pocketing the money, and the other siblings only finding out when the house needs to be sold to pay for aged care accommodation, or when their parent passes away.

“To most of us, such stories seem unbelievable, but they are happening and, sadly, they are probably happening more often than we realise. Many elderly parents are either too ashamed to admit what their children are doing, or are cognitively impaired and unable to understand that they are being left financially destitute.

“Again, a properly chosen Attorney is the best way to protect yourself from this kind of  situation.”

Ms Hacker says that unfortunately it can be quite a complicated area, as Enduring Powers of Attorney have slight nuanced differences from state to state.

Generally speaking, there are three different types of power of attorney:

• General Power of Attorney – someone is appointed to make financial and legal decision, often for a defined period of time.  For example, if you are going overseas for an extended period and want someone to look after your financial affairs while you are away.  This automatically ends when the period is ended, or if you lose the capacity to make decisions yourself
• Enduring Power of Attorney – this continues to operate after you lose capacity.  For instance, someone suffering from dementia is likely to benefit from having an Enduring Power of Attorney prepared so that when they have lost capacity, someone is in a position to act on their behalf
• Document related to medical decisions – the terminology and requirements for this changes from state to state and the power of the attorney also changes but generally, it allows someone to make medical decisions on your behalf, if you are no longer able to do so.

Ms Hacker says an Enduring Power of Attorney is an important consideration for everyone, not just people who are older or with a known illness that may affect mental capacity.

“For example, if you have an accident or a sudden illness that causes you to lose capacity to manage your financial affairs, no one will be able to access your assets on your behalf, such as your bank account or superannuation, unless you have an Enduring Power of Attorney in place and have appointed someone who will consider that your needs and wishes are taken into consideration as financial decisions are made.

“Your investments may require an important action to be taken, but you might not be in a position to do so.

“As long as the right person is chosen, having an Enduring Power of Attorney can make a huge difference to your security, quality of life and care,” Ms Hacker says.

The post Don’t overlook the value of Powers of Attorney in estate planning appeared first on AdviserVoice.

Anna Hacker

The growing trend for people to challenge Wills is set to continue as baby-boomers leave significant wealth behind – but perhaps not in the way that family members expect, says Anna Hacker, Wills & Estates Accredited Specialist at Australian Unity Trustees.

“It’s a sad fact that we are seeing more and more challenges to Wills, as it is a course of action that can irrevocably tear families apart, and often result in hard-earned wealth being spent on legal costs, with little left for the remaining family members.

“To help avoid this kind of unpleasantness, we often recommend to clients, if the circumstances are appropriate, that they take steps before they pass to ensure their family understands why they have made certain decisions or distributed their estate in a certain way in their Will.

“This kind of personal explanation can go a long way towards preventing challenges, and avoiding family disputes and rifts.”

There are a number of options for people to help manage expectations among family members, Ms Hacker says.

“If the family is on good terms and there are no estrangements, a useful first step is to hold a family meeting. This provides an opportunity to explain the bequests that have been made in the Will, and why.

“For instance, people may decide to leave their estate in a trust for their grandchildren, and nothing directly to their children, because they see that their children are in good jobs and well set up financially.

“But if this isn’t explained to the children, it could come as a nasty shock.

“People may also want to leave amounts to charitable causes, which their family might not be expecting. But explaining why a cause is important to them, and why they have chosen to support it, can help overcome any resentment in the family.

“We have seen cases where family members have sought to challenge any gifts made to charities. If a charitable gift had been set up during a client’s lifetime in a structure such as a sub-fund within a pubic ancillary fund or a private ancillary fund, such challenges could have been thwarted,” Ms Hacker says.

Ms Hacker said a letter of wishes is also a good idea.

“We usually recommend to clients that they don’t go into too much detail or explanation in a Will – it should be kept as a legal document that outlines what they want to happen to their assets.

“If clients believe some kind of explanation is necessary, it is better to do this in a letter of wishes, which doesn’t need to be presented as part of the Will in the application for a grant of probate but which can be used, if necessary, in a courtroom.

“For instance, explaining in writing that less money has been left to one child than another, because the first had received more money during the parents’ lifetime to, say, set up a business, may be useful – but these explanations must be given careful consideration. Any statements that are untrue or may change over time can actually assist in strengthening a case when a person later challenges a Will.

“Another situation we have come across is where a family member is appointed executor but takes their responsibilities a bit too seriously.

“If a person is unaware that they are an executor but find out in their time of grief, there are instances of them taking actions that are unnecessary and counter-productive to their role, perhaps because they are feeling so emotional.

“This, in turn, can affect their relationships with the family members of the deceased. For example, if an executor closes down utility services – which we have seen happen – when the surviving partner and their children still require access, this can cause huge strain on their relationship and make a stressful time even more burdensome for the surviving family.

“Unfortunately, such actions can cause rifts with family members and trigger estrangement between them. There may then also be a trickle-down effect with nieces, nephews and grandchildren with contact restricted due to these estrangements.

“If an executor is aware of their duties and understands what their responsibilities are, this generally leads to a more favourable outcome for all.

“Avoiding family problems is one of the main benefits of having a properly thought-through Will and estate plan. It’s not just about the financial considerations but also the emotional and personal ones,” Ms Hacker said.

The post Managing family expectations can help avoid challenges to Wills appeared first on AdviserVoice.

Anna Hacker

As Australia’s population ages, the number of people who will be affected by dementia is a growing issue, and as well as the personal and emotional impact of dementia on both the individual and their family, there is also a practical consideration.

“We are increasingly talking to people who have a parent suffering from dementia, who perhaps doesn’t have a Will, or whose personal circumstances have changed and whose current Will is no longer appropriate,” says Anna Hacker, Wills & Estates Accredited Specialist at Australian Unity Trustees.

“However, just because a person no longer has the capacity to make or update a Will, it doesn’t mean there is nothing that can be done.

“Each state in Australia allows for statutory Wills, which can be approved by the relevant Supreme Court for signing on a person’s behalf.

“For instance, there was a case recently where an elderly woman developed dementia and moved in with her son from her first marriage so he could care for her, as unfortunately her second husband was unable to act as her primary carer.

“Her second husband had applied for a family law property settlement and received a substantial portion of their combined estates in his own name.  This meant that the arrangements in her existing Will were no longer appropriate, as she had directed that her estate be divided between her husband and her children.

“Her son was able to apply to the Court to change his mother’s Will so that the majority of her estate went to her children and grand-children.  The Court accepted that this would have been her wish, if she still had capacity to change her Will.”

In order for a person to have a statutory Will made on their behalf, the Court must be satisfied that they lack testamentary capacity.

The Court will also decide whether the proposed Will is what the person would have wanted – not the family members or beneficiaries proposing the Will,” Ms Hacker says.

She also points out that dementia is not the only reason for needing a statutory Will.

“Another recent court case involved a young child who had severe physical disabilities as a result of problems at birth.  He had received $3.2 million in damages against the hospital which had been used to purchase a house for him, his mother and siblings, as well as produce an income.

“His father had had little to do with him since he was born, and his mother was his primary carer.

“The child was about to undergo serious surgery and an application was made for a statutory Will to be made on his behalf, as he had never had capacity to create his own Will.

“The Court eventually approved a Will that left the majority of the estate to the mother and siblings, with a small portion allocated to the father.

“Without the statutory Will, the father would have been able to claim part of the family home and the funds, which would have seriously affected the other children and their mother.

“While they are often a final resort, statutory Wills should always be considered when looking at estate planning options.  If a person has lost capacity, or indeed, never had capacity, it is entirely appropriate to look at whether a statutory Will can be made.

“Often, statutory Will applications are accepted by all parties and can allow for inclusion of strategies such as discretionary testamentary trusts,” Ms Hacker says.

The post Rising dementia rates to impact estate planning appeared first on AdviserVoice.

Anna Hacker

Social media accounts live on after their creators die, and their existence can create uncertainty for estate executors as well as distress for family members, says Anna Hacker, national manager, Estate Planning at Australian Unity Trustees.

“Digital footprints on death are an issue of growing importance as social media usage steadily proliferates – not just with generation Z and millennials but increasingly with older generations as well,” Ms Hacker says.

“Taking stock of and itemising the social media accounts of the deceased is difficult enough. Add to the mix the fact that these platforms tend to operate in offshore jurisdictions means there is no uniform treatment, and not a lot of local legislative guidance, on how to gain control of content and close down accounts.”

Ms Hacker says the finding last month in a Massachusetts Court in the United States is a good example.

“In the case Ajemian vs Yahoo! Inc. the Court found that legal representatives of a deceased email account holder were able to access email messages of the deceased, despite there being no Will or direct instructions allowing this to occur.

“People rarely give any thought to their digital footprint when making a Will, but with social media activity on the rise, the treatment of social media accounts and content is an issue that should be incorporated into all estate planning considerations.

“For close relatives and friends the real meaning of many of these social media platforms is the access to the photographs and images that are saved there. It is often the case that the social media platform is the only place these images are stored, and once the account is closed, they can be lost forever.”

The different social media platforms have different procedures and actions that occur on a user’s death, and it is worthwhile being across the different treatments, Ms Hacker says.
Depending on the platform, the options for family members are to have the account memorialised, or to have the account closed down

“Facebook, the most popular platform, allows users to nominate a legacy contact who can control what happens on the account on the user’s death. This takes in a simple account closure, to downloading content, to establishing a memorial site with pinned content.

“Instagram, similarly, will memorialise an account on the death of the user if a family member requests it. It will also remove an account on a family member’s request.

“Despite being one of the most popular platforms, Twitter doesn’t offer any legacy contingencies, although family members can request an account of a deceased person to be deactivated.

“For many professionals, LinkedIn is an essential communication and networking tool. While LinkedIn doesn’t provide any memoralisation options on the death of an account holder, it does provide functionality to request the removal of a user’s account.

“Consideration of your social media accounts, and the ownership of your digital footprint content in them, should not be ignored when making a Will,” Ms Hacker says.

The post Digital footprints on death – why they matter appeared first on AdviserVoice.

Anna Hacker

People who have already written a Will shouldn’t view it as a “set and forget” document but should be reminded by their advisers to review and update it regularly, said Anna Hacker, national manager estate planning at Equity Trustees.

“It can be tempting to cross “write a Will” off your To-Do list once it’s completed and forget about it, but this could be a mistake,” Ms Hacker warned.

“Sometimes, having a Will that isn’t up to date can create more problems than having no Will at all. For instance, if a marriage has broken down since the Will was written, it might not automatically mean that the former partner will no longer be involved in the estate administration.

“There have certainly been cases where an estranged spouse has received everything under a Will after a bitter split, despite it clearly no longer being the deceased person’s wishes.

“Likewise, the birth of additional grandchildren could mean that the wording of a Will should be amended to ensure that everyone inherits equally and no-one feels left out,” she said.

Ms Hacker said Wills should be reviewed every three to four years to make sure they reflect current circumstances.

“Spending just a couple of hours going through the Will and updating it could save loved ones thousands of dollars, and significant distress, after you die.

“It is becoming increasingly common to see court cases where someone has challenged a Will because they believe they have been left out, or not received their fair share, and in many cases this could have been avoided if the Will had been kept up-to-date.

“I have seen long-standing rifts in previously close families because of such cases, and it would definitely have not been the wishes of the deceased to have caused such troubles,” Ms Hacker said.

Five key areas to look at when reviewing your estate plan include:

1. Has there been a change in family circumstances such as the addition of new family members or assets? If so, the Will should be amended to reflect this.
2. Does the Attorney or Executor need to be reviewed or updated? People often nominate a close friend for the role who is the same age as them, which means they may die before them.
3. Does the binding death benefit nomination in superannuation need to be renewed? If it has been more than three years since the nomination was made it may no longer valid.
4. Is the Will in sync with superannuation? Superannuation is not automatically covered by a Will and specific arrangements may be required to ensure the Will and super death benefit nominations work together.
5. Are any of the nominated beneficiaries vulnerable? It may be a good idea to protect their inheritance if, for instance, they have special needs, are in the middle of a marital breakdown or have alcohol, drug or gambling dependencies.

“These are the most common areas where problems can arise, so they are good ones to check on a regular basis,” Ms Hacker said.

“However, a thorough review should be undertaken from time to time as well, preferably with an expert who can help identify any potential problems, and find ways to address them.”

The post Five tips on reviewing an estate plan appeared first on AdviserVoice.