Question 1

Why do I need a will?

Accepted Answer

Without a valid will, your estate will be distributed according to the rules of intestacy under the Administration Act 1903 (WA), which may not reflect your wishes. A will allows you to specify how your assets are distributed, appoint executors and trustees of your choice, establish testamentary trusts for tax planning and asset protection purposes, and make provision for minor children including the appointment of guardians. Regularly reviewing and updating your will is essential, particularly after major life events such as marriage, divorce, or the birth of children.

Question 2

What is a testamentary trust and what are its benefits?

Accepted Answer

A testamentary trust is a trust established under a will that comes into effect upon the death of the will-maker. Key benefits include tax planning advantages, as income distributed to minor beneficiaries from a testamentary trust is taxed at adult marginal rates rather than penalty rates. Testamentary trusts also provide asset protection for beneficiaries, as assets held in the trust are generally protected from the beneficiary's creditors, and can provide flexibility in the distribution of income and capital among a class of beneficiaries.

Question 3

What is a family provision claim?

Accepted Answer

A family provision claim under the Family Provision Act 1972 (WA) allows eligible persons to apply to the court for provision from a deceased estate if the deceased's will does not make adequate provision for their proper maintenance, support, education, or advancement in life. Eligible persons include the spouse, children, and former spouse of the deceased, as well as grandchildren and other dependants in certain circumstances. Claims must generally be brought within six months of the grant of probate.

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