What happens to your social media accounts when you die?

As social media proliferates, dealing with a loved one’s digital footprint after their death will become an increasingly complicated issue, says Anna Hacker, wills and estates accredited specialist at Equity Trustees Limited (EQT).

“The treatment of physical assets in the estate planning process is well documented, but what about digital ones?” Ms Hacker asks.

“In the brave new world of FaceBook, Twitter, Instagram, Ebay, Paypal, LinkedIn, Kik, and the like, the process of shutting down a loved one’s social media account after death is not clear cut.

“What’s more, ownership of the material in the account, such as stored digital images, does not automatically pass to the estate beneficiaries.

“The issue for many is that they want to access photos that are stored on their deceased family members social media sites. In this digital age, when many of our photos are stored on social media sites, and nowhere else, it can be distressing to be denied access.”

Ms Hacker says social media aspects of estate planning are an emerging problem that will hit critical mass in the future.

“To date, social media hasn’t been a big issue in the estate planning process as the older generation is not as attuned to it. However, it will become a growing issue in the future, complicated by the fact that the legal treatment of digital assets after death is not clear cut.

“Social media assets, and how to account for them, is an issue we are increasingly raising with our clients when we are providing an estate planning service, to ensure they have thought through the implications.

“But the generation that really utilises social media heavily hasn’t been affected en mass yet.”

Ms Hacker says most social media sites do have policies on how a deceased person’s account can be closed by an executor, but the process depends completely on the terms and conditions of that entity.

“Being across what will happen with one social media account, is no guarantee that you are across the treatment that will apply for all of them,” Ms Hacker says.

“With Yahoo media, for example, the account is automatically closed in the event of the account holders death. With Facebook, the account can be converted to a memorial page. There is no uniformity of treatment.”

The issue can be further complicated by the different legal jurisdictions that these sites operate in.

“When you open a bank account with your local branch, you know that bank and you know that branch. But when you open an online account on social media, you could be anywhere.

“Most platforms are based in the US, and would have the relevant US law apply. In some circumstances you may need a court order to access the information, and often people won’t know this until it is too late.”

Ms Hacker says there are steps that can be taken in the estate planning and will drafting process that will assist

“The best approach is to ensure that you leave your social media details behind. In the same way that you might leave behind details for the code to a safe, you can leave a sealed document, stored with your will, containing all the information relating to your passwords and online accounts.

“Even this approach is problematic however, as online account passwords are often required to be updated regularly.

“Another issue to be considered is that by accessing an account after the account holder’s death, you could be acting illegally.

“The law hasn’t caught up with the implications of the treatment of digital assets on an account holder’s death, to properly deal with it. It is important that people are aware of this when completing their estate plan,” Ms Hacker concludes.

Ms Hacker’s tips for dealing with social media include:

• Keep a sealed record of the details of your digital accounts and passwords in a secure place
• Don’t only store your digital images on social media sites, and nowhere else
• Be aware that if you contact a social media site to inform about a family member’s death, the account may be immediately closed, and all information lost
• The laws related to social media are constantly evolving so if this is of relevance to you, make sure you keep updated as to changing rules
• Consider what might happen if you lose capacity and your attorney needs to deal with your social media access – this is almost unknown territory.

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Joyce Philllips

ANZ yesterday announced it has completed the sale of ANZ Trustees Limited to Equity Trustees Limited.

As part of the agreement, ANZ formed a new strategic relationship with Equity Trustees involving a range of client referral and service arrangements. ANZ also retained its Philanthropic Advice, Estate Planning, Investment Management and Alternative Investment capabilities.

ANZ CEO Global Wealth Joyce Phillips said: “This sale allows us to focus on the key elements of our wealth strategy, while also providing our clients with continued access to specialist trustee administration services.”

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Harvey Kalman

Mr Kalman said that it should be seen as an imperative that Australia aligns its financial services compliance and tax regimes with international practice, as well as coming into line with the Collective Investment Vehicle (CIV) approach now being used internationally.

“It is an ideal time for the bodies representing the various sectors of the financial services industry to present a coherent approach that will result in product changes that capitalise on Australia’s already strong reputation in the region.

“There is a clear opportunity to make Australia the regional centre for investment funds, supporting other moves to make it the overall premier Asian financial hub.

“This would be of enormous benefit to our economy, capitalising on the expertise we have already developed in financial services and regulation to create jobs, increase investment opportunities, add tax revenue, and benefit our trading position.”

Mr Kalman said that Australia needs to adapt its investment vehicles so that they align with what is considered international best practice or even introduce “me too” structures that will support Australia’s leadership role in financial services in the Asian region.

“We are able to use the work of other international jurisdictions, for example the Undertakings for Collective Investment in Transferable Securities (UCITS) approach developed by the European Commission.

“I have argued for some time that Australia has the expertise, regulatory know-how and established financial base to develop an Australian/Asian UCITS (A-UCITS) that would bring the Australian finance industry huge benefits.

“UCITS have now been adopted by all members of the European community as the preferred CIV structure.

“The key to their success is that they can produce a new share class in the CIV, which may have a different base currency, or be hedged or unhedged for currency. This quarantines the effects of the different currencies to that share class.

“So, for example, depending on where an international investor is based or what their own preferences are, they could invest in an Australian bond fund in either an Australian dollar share class, Euro share class, or Hong Kong dollar share class and receive performance in their base currency.

“Investors in other share classes would not wear the effects of currency movements that are unrelated to their own investments.

“We should face the reality that investing through Australian funds is not attractive to overseas investors because our investment funds do not comply with what is generally regarded as the required standards internationally.

“The reality is that Australian investment vehicles are off the radar for investors from other countries.

“UCITSs have already made inroads internationally and are well regarded by the global investment community.

“There is obviously a huge market for such products and I am fearful that if Australia doesn’t move quickly to introduce a similar internationally accepted investment vehicle, another jurisdiction will, to our cost,” he said.

“We should be using our experience in regulatory improvements, advice and superannuation, as well as developing better investment fund models to maintain our leadership position, meet international standards, and attract more investors.

“It takes time to bring around the kinds of changes needed and we need to move quickly or we will miss out on the Asian savings boom,” Mr Kalman said.

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“With the growth in the Equity Trustees business in recent years, increased regulatory and reporting expectations, significant expansion in scale through the ANZ Trustees acquisition, together with our objective to meet the highest standards consistent with our fiduciary obligations, an elevation in the profile and significance of this key function is now appropriate,” Mr Burns said.

The appointment follows the announcement in April that Equity Trustees had agreed to acquire 100 per cent of ANZ Trustees Limited for $150 million. The acquisition will further enhance Equity Trustees’ position as a leading provider of trustee and related client services.

Ms Noble is an experienced senior executive with over 25 years of experience in both private and public sector roles. She has worked predominately in risk and compliance, legal and operational positions, and has also held senior revenue generating roles.

“Amanda has significant relevant executive level experience at a number of major financial institutions and has also had direct profit and loss responsibility in complex financial services,” Mr Burns said.

“Her experience means she is ideally placed to head up the newly formed Risk and Compliance business unit, and to continue Equity Trustees’ progress in maintaining its strong risk and compliance track record.”

Ms Noble has a Masters of Business Administration from Melbourne Business School as well as a Bachelor of Arts from the University of New South Wales. She holds Diplomas in Law, Leadership and Asian Studies and is currently completing her Masters of Law. She is a member of the Australian Institute of Company Directors, holds a current legal practising certificate and is an associate of FINSIA. She commenced with Equity Trustees on 19 May 2014.

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Ages care reforms bring changes post-June 30

The Aged Care reforms due to come into effect on 1 July 2014 will see retirees paying more for their admission to, and ongoing care in, aged care facilities, says Anna Lawton, senior manager, aged care services at Equity Trustees Limited.

“If a move to an aged care facility is something that is being considered as likely in the next six to 12 months, it may make sense for families to consider making the move before June 30,” Ms Lawton says.

“The cost of aged care will increase, particularly for part pensioners and self funded retirees,” she says.

How much they will pay will depend on their asset and income level, whether they remain homeowners once in care, and how much they pay for the cost of accommodation (called the Accommodation Payment).

“Accommodation Payments will be structured slightly differently to the current system, which will mean most people will pay more for the right to reside in care. Asset and income levels will determine how much they need to additionally contribute towards their daily care payments in the form of the means tested fee,” Ms Lawton says.

The current system of accommodation bonds will be replaced with refundable accommodation deposits (RAD). Period payments will be replaced with daily accommodation payments (DAPs).

“Providers will be obliged to start advertising their prices from 19 May 2014, and until this time there is no certainty about how much a provider will charge those entering care after June 30. However the expectation is it will cost more,” Ms Lawton says.

“The maximum Accommodation Payment that can be charged by a facility will be $550,000. Those aged care providers wanting to charge a higher amount will need to apply for permission to do so, and will need to provide justification for the higher price.

“The biggest change is that a resident’s co-contribution will be assessed based on both assets and income rather than the current system of income only.  As a result, no one situation is going to be straightforward and simple.

“The amount of RAD a person pays counts in the means tested fee calculation. The current simple strategy undertaken by most – to sell the house, pay the bond, keep the pension and cover the fees – will no longer be a given.

“The means tested fee will impact significantly on a person’s cash flow resulting in the resident having to fund many out of pocket expenses, such as medications, from income earned on their investments, if there is any left over, or more likely by drawing down on capital.

“No one situation will be simple anymore. It is entirely possible that two aged care residents will face a different financial outcome, despite having essentially the same level of assets. Now more than ever before, it will be imperative for those entering aged care to seek professional advice to ensure they can afford the cost of aged care,” Ms Lawton concludes.

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Mani Papakonstantinos

Mani Papakonstantinos has joined Equity Trustees Limited’s (EQT) funds distribution business as key account manager, with responsibility for further building EQT’s relationships with financial advisers in Victoria and West Australia.

Mr Papakonstantinos joins from AMP where he was investment research manager. He has also worked at AXA Australia as investment research analyst and business development consultant, and at ANZ as a financial planner.

David Myers, head of sales at EQT, says that Mr Papakonstantinos’ broad range of experience in the financial services industry was particularly attractive.

“Mani brings a great wealth of technical investment knowledge to the role, with insight across all asset classes, as well as asset allocation and creating portfolio solutions for advisers.

“In the ever-changing financial planning environment, EQT believes that providing a high level of support and assistance to financial planners is crucial. Mani will be instrumental in ensuring we continue to provide the highest quality service to advisers,” Mr Myers said.

Mr Papakonstantinos holds a master of applied finance from Macquarie University, Melbourne, a bachelor of law/economics (majoring in finance) from La Trobe University, and a diploma in financial planning from Kaplan.

EQT Funds Management is a business unit of listed financial services company Equity Trustees Limited (EQT) that has formed alliances with award-winning boutique managers and recognised global managers to distribute and support a range of managed funds. These include Equity Trustees Asset Management, SG Hiscock & Company, PIMCO and Dundas Global Investors.

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Australians should sign a financial Enduring Power of Attorney when they retire: EQT

Far too many retired Australians have not granted a financial Enduring Power of Attorney, which can lead to problems for their loved ones and unnecessary family conflict, said Anna Hacker, wills and estates accredited specialist at Equity Trustees Limited (EQT).

“As Australians live longer, it becomes increasingly necessary to have measures in place in case they become mentally incapable of making decisions or physically unable to cope.

“I would suggest that having a financial Enduring Power of Attorney is as important as a Will for the retired and if they don’t already have one every Australian should sign a financial Enduring Power of Attorney when they retire.

“Indeed, every retired Australian should have both a Will and a financial Enduring Power of Attorney – if not, they are likely to cause problems for their family. Yet far too many Australians have neither.”

Ms Hacker said that, put simply, a Will gives instructions as to what happens to their assets when they die, and an Enduring Power of Attorney allows the nominated Attorney, or Attorneys, to take action if the granter is no longer capable of doing it for themselves.

“The people nominated can only make decisions to do with finance or property and in these areas all actions taken are legally binding.

“However, the financial Enduring Power of Attorney does not cover other areas such as decisions about care or medical treatment.

“One or more people can be appointed with a financial Enduring Power of Attorney and often it is the same person or people nominated as Executor in the Will – but it doesn’t have to be.”

Ms Hacker said it is important for anyone appointed with a financial Enduring Power of Attorney to have an intimate knowledge of the person’s financial affairs.

“It is important that all cards are placed on the table by anyone nominating an Attorney to act, to prevent costly oversights.

“Without this knowledge, bills may not be paid, share entitlements lost, and property forfeited.

“The responsibilities of a person named as the Attorney can be quite onerous and any actions taken must, by law, be motivated solely in the best interests of the person granting it.

“They cannot take any action that benefits themselves or others – such as fee arrangements – unless it is specified in the document itself.

“Only the person granting a financial Enduring Power of Attorney or the State Administrative Tribunal can cancel it.”

Ms Hacker said that EQT recommends that when people create a financial Enduring Power of Attorney, they should consider documenting their thoughts on what they would like to happen if they become incapacitated.

“This way, their wishes are made clear to the people who need to make decisions on their behalf.

“Having a financial Enduring Power of Attorney is particularly important for those who have responsibility for others, such as dependants,” she said.

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Mr Boubouras was appointed to the role on an interim basis in April this year.

Mr Boubouras has over 20 years experience in the financial services industry, including time at Macquarie Bank, HSBC Asset Management, Challenger Financial Services Group, and Westpac as well as NSW Treasury. He joined EQT from UBS Wealth Management where he was head of investment strategy and consulting, responsible for research & investments across all asset classes.

Robin Burns, managing director of EQT, said Mr Boubouras has already made significant steps in enhancing EQT’s asset management capabilities and approaches.

“George was heavily involved in driving the review of our asset management and risk management activities, which resulted in the appointment of Mercer as asset consultant for both our retail and institutional businesses, and this relationship is working extremely well.

“He has also appointed the respected fund manager Paul Kasian as our head of Australian equities, adding significant strength to our asset management capabilities.

“As the regulatory, economic and political framework for the Australian financial services industry continues to change, we are particularly pleased to have someone of the calibre and experience of Mr Boubouras leading our funds management business,” Mr Burns said.

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Ms Barp has more than 20 years’ marketing experience in Australia, the UK and Asia. Before joining EQT, she spent 10 years with UBS AG in senior marketing roles. She joined UBS in London in 2003 and transferred to Singapore in 2006. In 2010. Ms Barp returned to Australia as head of marketing – wealth management, based in Melbourne.

Prior to joining UBS, Ms Barp held the dual roles of marketing and operations manager, small business solutions, at The Innovation Group in the UK. She also spent a number of years at MBM Advertising and Communications in Sydney in account service, and worked in promotions and marketing for several radio stations owned and operated by the Austereo Radio Network. She holds a bachelor of arts (psychology) from Flinders University.

Robin Burns, managing director at EQT, said that Ms Barp’s experience in both international and Australian financial services industries will be especially valuable to EQT in helping improve understanding of the services it offers.

“The skills and expertise that EQT has developed have particular bearing for many Australians seeking help in managing their financial needs.

“Last year, we embarked on a program to strengthen our private wealth management and corporate fiduciary businesses, and Lisa’s appointment will help us better communicate the relevance of our services and the benefits that we can bring to wealth accumulators, high net worth individuals, and other organisations providing financial services and investment solutions.

“We believe that EQT has an exceptional role to play as a trusted and respected financial services organisation in today’s complex and ever-changing financial environment in helping Australians with their wealth management and protection needs,” Mr Burns said.

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Mr Kordick has 12 years industry experience and joins EQT from institutional asset consultant Frontier Investment Consulting, where he was an investment analyst. In this role, he was responsible for overseeing portfolio construction and investment strategies, investment processes and performance. He has also worked as an equity analyst at Diogenes Research. Michael holds a bachelor of commerce from the University of Melbourne, a masters in applied finance from Macquarie University and is also PS146 compliant.

Mr Doan has joined from boutique asset consultant Atchison Consultants, where he was an investment analyst responsible for quantitative analysis, manager selection and portfolio construction. He holds a bachelor of business (honours) degree in economics and finance from RMIT, and a master of finance from the University of Melbourne and has passed all three levels of the CFA Program.

Mr Boubouras said that the two appointments further expand the Australian equity capabilities of the EQT investment team, providing additional support to the CIO and head of equities.

“The appointments of Michael and Thi to the team will help ensure we have the resources and expertise in place to take the next step in the development and growth of EQT’s funds management capability.

“The EQT equities team now includes two portfolio managers and four investment analysts, and we intend to continue to add to our asset management capabilities as the right opportunities develop,” Mr Boubouras said.

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