Every new business has different needs, but when advising startups and entrepreneurs there are key issues and opportunities that regularly arise. At this event our experts will be sharing their top tips for early stage and growth businesses, including common pitfalls and simple steps you can take to help protect your clients at the outset. Topics will include: The best business structures for tax benefits and asset protection Capital raising and grant eligibility Identifying and protecting valuable IP assets Managing key relationships and the agreements to have in place Wednesdays With Redchip are complimentary events and include light refreshments.

1. Estate Planning Scenarios & Solutions
Common scenarios and the complexity of people’s affairs
Emily O’Brien
Associate
redchip lawyers

2. The Opportunity
• Estate Planning is becoming more complex
• The value of the average Australian’s Estate is
growing
• Growth in litigation involving deceased estates
• There is a need for all Australians to ensure
they have an Estate Plan in place

3. Scenario 1
I’m young and I don’t have much, so there isn’t
any point in preparing a Will

4. A Recent Example
• A 24-year-old male signed a Contract to purchase a
unit off the plan
• He died unexpectedly prior to the Contract
completion
• He had no Estate Plan
• His parents were left dealing with the property
developer as the deceased estate remained
contractually bound to buy the property

5. A Real Story
• A 30-year-old male had been in a de facto relationship for
eight years. His partner was dying of a degenerative motor
neuron disease.
• The young man ceased work and cared for his partner for
approximately 6 years until he passed away.
• The deceased had done some Estate Planning, including:
– preparing a Will which removed his partner as a beneficiary; and
– severing the joint tenancy of a property they jointly owned, allowing
the deceased to leave his half interest in the property to his family.
• This was all done without the young man’s knowledge. He
discovered what occurred a matter of weeks before his
partner passed away.

6. Scenario 2
I’ve been to see my accountant and they told me
it’s enough that I’ve written down what I want
to happen

7. Section 10 of the Succession Act
1981 (Qld).
• the Will must be in writing;
• the Will must be witnessed by 2 people who
sign the Will in the presence of the Testator;
• the Testator must sign the Will with the
intention of executing a Will.

8. Scenario 3
I’ve got a Will. I did it 20 years ago when my kids
were small.

9. All of my wealth is tied up in the trust I have with
my brother. My family can just split that. I know
my brother will do the right thing.
Scenario 4

10. Example – asset protection strategy
• Client was 45 years old, single and never married
• He established a family trust within which he purchased two
properties
• The family trust was structured with the client’s brother as
Trustee, Principal and Primary beneficiary
• The client was not named in the trust deed at all and had no
legal control
• The client trusted his brother completely and his brother
followed the client’s directions in relation to all matters
associated with the family trust
• This arrangement worked well until sadly, the brother died in a
car accident.

11. Scenario 5
I haven’t bothered to divorce my first wife.
We’ve both moved on and she is being looked
after by her new boyfriend.

12. Calvery v Badenach [2015] TASFC 8
• A solicitor attended on a terminally ill client and received
instructions to prepare a Will leaving all of his Estate to a friend
• In previous Wills the deceased had made a bequest to an
estranged daughter. This bequest did not appear in the final Will
• After obtaining Probate on the Will, the estranged daughter was
successful in being granted a significant portion of the deceased’s
Estate
• The friend brought a claim against the solicitor claiming that he
was negligent and owed a duty of care to advise the beneficiary of
the possibility that a claim may be brought given that the testator
did not make provision for his daughter.

13. Scenario 6
I’ve done my Will. My lawyer told me that it
divides up all of my assets including the ones
sitting inside my trust and in super.

14. Section 8 Succession Act
Property that may be disposed of by will
1) A person may dispose by will of any property to which the person
is entitled at the time of the person's death.
2) Subsection (1) applies whether or not the entitlement existed at the
date of the making of the will.
3) A person may dispose by will of any property to which the person's
personal representative becomes entitled, in the person's
capacity as personal representative, after the person's death.
4) Subsection (3) applies whether or not the entitlement existed at the
time of the person's death.
5) A person may not dispose by will of property of which the person
is trustee at the time of the person's death.

15. Scenario 7
Everything I’ve got is tied up in my business but
my kids have said that they don’t want to be
involved in it when I’m gone

16. Scenario 8
I’ve got 2 kids and helped them both out. One
more than the other. They’re paying me back but
slowly. I know they’ll sort it out between them
when I’m gone.

17. Scenario 9
My affairs are too complicated. There is so much
to consider with my 3 kids, my business and all
these trusts and companies my accountant put
me in to make things simpler.

18. Case Study – The Jones Family
Trading Company Pty Ltd
Directors
– Noel Jones
- Cameron Jones
- Damian Jones
ATF Noel
Jones Family
Trust
Noel Jones Pty Ltd
Directors
- Noel Jones
Noel Jones
10 ORD
(full voting)
Cameron
Jones
Damian Jones Damian Jones Pty Ltd
Directors
- Damian Jones
- Noel Jones
Cameron Jones Pty
Ltd
Directors
- Cameron Jones
- Noel Jones
10 ‘E’ class
(dividend
only)
10 ‘F’ class
(dividend
only)
Noel Jones
ATF Damian
Jones Family
Trust
Damian Jones
and Noel Jones
ATF Cameron
Jones Family
Trust
Cameron Jones
and Noel Jones
10 ‘F’ class
(dividend
only)
10 ORD
(full voting)
30 ORD
(full voting)