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Baby Boomers - Does your will provide adequate protection for your grandchildren?

These days, more and more people are concerned about providing for their grandchildren’s future, however, if you don’t have a current and thorough estate plan, you are at risk of having your hard earned assets given away to third parties or taken over by the taxation office.

Completing a thorough estate plan is crucial for the comfort and wellbeing of loved ones. It is also much more than just making a Will. Depending on your current financial situation, as well as your family situation, you might also need to review your superannuation nominations, discretionary trust deeds, any company documentation and powers of attorney.

The following case study demonstrates how a simple Will doesn’t always achieve what you intend.

Bill and Alice were married for 40 years. Their only child, Alan, was married to Anne and they had two children of their own.

Bill and Alice made Wills which left their estate to each other, and then to Alan. In the event that Alan died before them, their estate was to pass to their two beloved granddaughters.

Bill and Alice both passed away in their 80s and, in terms of their Wills, their entire estate was ultimately left to their son Alan. Five years on, Alan died suddenly in a car accident. His estate, which included the inheritance from his parents, was left to his wife Anne.

Anne, was at this stage, the sole heir to her in-laws’ estate. A few years on, Anne has remarried and made a simple Will leaving everything to her new husband who has children from a previous relationship.

Despite the best intentions of Bill and Alice, and their son Alan, their hard earned estate is now under the control of their daughter-in-law who has remarried. Unless Anne changes her Will, Bill and Alice’s estate will bypass their grandchildren completely and will possibly end up with Anne’s new husband (and maybe even his children!).

The outcome of this case study is common. It’s not enough to just have a Will in place; to provide maximum protection for you loved ones, speak to a Bridges financial planner about including a trust structure in your Will which ensures your grandchildren receive benefits from your estate, whilst still providing for your children.

^{Source: Australian Executor Trustees}

To find out more about the financial issues that affect your generation, Bridges have created a ‘Taking care of MY generation’ guide. Logon to www.bridges.com.au to view an eGuide or call Summerland Credit Union to order a printed copy.

For more information on Bridges’ services or to arrange a complimentary, obligation-free initial consultation with a Bridges financial planner near you, please call Summerland Credit Union on 1300 802 222 and start making the most of your money now.

Bridges Financial Services Pty Limited (Bridges). ASX Participant. AFSL No 240837. This is general advice only and does not take into account your objectives, financial situation and needs. Before acting on this advice, you should consult a financial planner. In referring members to Bridges, Summerland Credit Union does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.