Article of Interest on Wills & Estates

WILLS, PLANNING AND SECURITY

Colin and Carolyn have been living together for 6 years. They have not been formally married. They have 2 children. Colin was born in South East Asia. He met Carolyn while travelling. The relationship blossomed. Carolyn returned to Australia and Colin followed. Colin is now a permanent resident in Australia.

Colin had many investments in South East Asia and was financially well off. However, Colin had limited superannuation benefits in Australia with no death benefit. He had no life insurance. He was initially reluctant to make a Will. Carolyn felt very vulnerable.

There was little doubt that if Colin was to die without a Will all of his assets in Australia would go to Carolyn and the children. But an examination of those Australian assets showed that Carolyn would be left with a property worth $500,000.00 and a debt of $300,000.00. She would have 2 small children to provide for as a single parent.

Colin assumed that Carolyn would be provided for from his investments in Asia. But Carolyn wanted security and persuaded Colin to make a Will. The couple had a simple Will was drafted, leaving the whole of Colin’s estate to Carolyn.

Unfortunately, the reality was that the Will in Australia was not binding in the Country in which Colin’s assets were located. The disposal of the overseas assets on the death of Colin will be determined by the law of that relevant country.

The law of the country where Colin’s investments were situated needed to be examined and legal assistance sought from Lawyers able to identify a potential problem.

In any event, a plan needed to be put in place in Australia which gave security to Carolyn and the children. This plan should be tailored to your needs through discussion with your solicitor.

The assumption by Colin and Carolyn to rely on a Will made in Australia to dispose of assets located in a foreign country can be a mistake. A Will must be carefully planned taking into account your particular circumstances.

More Articles of Interest on Wills and Estates.