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Copyrighted Material Index ademption 59–60 age pension 253–262; see — avoiding 60 also aged care; Centrelink administration in intestacy 51 and estate planning; aged care 283–293; see also Centrelink and private residential aged care trusts and companies — accommodation payment — assets test 256–258, 289–291 261–262 — Aged Care Assessment — defi nition of assets 257 Team (ACAT) 285–286 — downsizing residence 258 — case studies 288, 289 — exclusions from assets — Commonwealth home 257 support 286 — exclusions from income — eligibility 284–286 test 255 — estate-planning — granny fl at interest implications 292–293 258–262 — fees and charges 288–291 — income and assets tests — fl exible care 287 255 — gifting assets ahead of — income, defi nition of 255 residential care 291–292 — marital status 254 — homeCOPYRIGHTED care packages — meansMATERIAL testing 253, 286–287 255–258 — residential 287, 288–292 — ordinary income test — transition to 283–284 255–256 — types of care 286–287 — qualifi cation for 254–262 Aged Care Assessment Team — residential care and (ACAT) 285–286 288, 289 305 bindex 305 21 June 2019 12:00 PM The Australian Guide to Wills and Estate Planning age pension (continued) business succession and estate — reverse mortgage and 278 planning 229–239 — transferring assets before — case studies 235–236 death 259–260 — children, equal treatment agreements, fi nancial, and of 234–236 cohabitation see — considerations, other cohabitation and fi nancial 232–236 agreements — importance of 229 appointor 98, 101, 111 — involuntary departure succession of 114–116 agreements 231 assets, estate see estate assets — life insurance 231, 244 — memorandum of wishes bankruptcy 7, 36, 110, 111, 237–238 124, 132, 137 — ownership and disposal benefi ciaries see also 236–238 families, blended; special — partners and needs, benefi ciaries shareholders, surviving with; superannuation 230–231 death benefi t; trust, — shareholder and superannuation death unitholder agreements 232 benefi t; trust, benefi ciary- — structures 229, 236–238 controlled testamentary; — succession agreements, testamentary trust forms of 231–232 — adjusting entitlements — taxation 238 68–69 — voluntary departure — case studies 70, 71 agreements 231–232 — disputes among 71 — refusal of gifts 67–68 capital gains tax see tax, — s pendthift, trust for capital gains 140–141 Centrelink see also age — timing of gifts 66–67 pension; disability blended families see families, support pension (DSP) blended — protective trusts 146, business succession 148–149 agreement and life — special disability trusts insurance 244 149, 150 306 bindex 306 14 June 2019 8:16 AM Index Centrelink and estate — trust, designated private planning 253–262; see 264, 265, 266 also age pension — trust, testamentary, — age pension 253, application of provisions 254–258 to 272 — case studies 259–260 challenges to a will see — deprivation rules 258, also estate assets; will 260 contents; wills — gifting rules 258, — agreements not to 89 291–292 — case studies 87–88, 89 — granny fl at interest — defeating a claim, 258–262 strategies for 90 Centrelink and private trusts — disentitling conduct and companies 263–282 87–88 — asset for Centrelink — duress 92, 93 purposes 264–265 — estrangement, effect of — assets, determining value 92–93 of 270 — fraud 92, 93 — associates 269 — invalidity of will — attributable stakeholder 92–93, 94 268–270 — process of 83–84 — case studies 267, 268 — promises made 88–89 — company, designated — protecting from 81–94 private 264, 265, 266–267 — provision, lack of — control, surrender of 84–89 271–272 — provision, myths — control test 265, 266–267 regarding 91–92 — estate-planning — testamentary capacity 92 consequences 273 — time limits on 90–91 — liabilities, allowable — undue infl uence 92, 93 270–271 — validity 92–94 — relatives 269, 270 charities — share, pensioner’s 265 — tax deductible 73–74 — source test 265, 267–268 — tax exempt 72–73 — succession of trust 263 — in wills 72–74 — treatment of 264 — as trusts 101 307 bindex 307 14 June 2019 8:16 AM The Australian Guide to Wills and Estate Planning children see also families, disabilities, benefi ciaries blended; trust, child with see special needs, support; trust, estate benefi ciaries with proceeds; trust, disability support pension superannuation (DSP) 146, 148 death benefi ts; trust, divorce 7, 22, 226; see also testamentary families, blended — case study 159 — joint tenant property — taxation of 125, 135, — will revocation 79 157, 158–159, 160–163, downsizing 280 163–167 — Centrelink implications cohabitation and fi nancial of 280, 281 agreements 225–228 — binding 225–226 elder law — ending 226 — age pension 253–258 — estate-planning — aged care 283–293 consequences 227–228 — Centrelink and estate — invalidity 22–227 planning 253–262 — requirements for 226 — Centrelink and private — separation declaration trusts and companies 227–228 263–282 — timing of 225–226 — defi nition 253 — ultimate benefi ciaries 225 — estate planning 251–296 Commonwealth home — granny fl at interest support 286 258–262 Cultural Bequests Program 73 — mortgages, reverse 275–292 death, superannuation and estate assets 11–18 see superannuation and — blended families 23 death; taxation and — case studies 13–14, 23, debts and liabilities, payment 61–2 of 43–44 — CGT consequences of deeming rules, Centrelink’s gifts 61, 62 67–68 — CGT on disposal of deprivation rules 150, 258, 173–177 260 — components of 11–14 308 bindex 308 14 June 2019 8:16 AM Index — distribution of 45, 59 executors 39–53; see also — distribution of, altered executors, professional; 59–60 funerals — documentation of 14 — appointment of 56–58 — encumbered 61 — assets, locating 41–42 — estate vs non-estate 12 — case studies 44–45, 49–50 — investment, gift of 59–62 — death of 51–52 — locating 41–42 — debts and liabilities, — non-estate assets 18, 68, payment of 43–44, 56–57 114 — defending will against — ownership 13–14, 31 challenges 44 — protecting 42 — disposal of body 58 — tenants in common vs — distributing estate 45 joint ownership 15–17 — distributing estate — testamentary trust, effect residue 57–58 of 16–17 — duties 40–47 estate planning 3–10; see also — funeral, arranging 41, 58 Centrelink and estate — more than one, planning; trusts; will appointing 47–48 contents; wills — notifi cation of authorities — advisers 8–9 45–47 — ambiguity, avoiding 7 — powers of 58 — case studies 6, 13–14 — probate, applying for — Centrelink and estate 42–43 planning 253–262 — professional, appointing — defi nition 3–4 48–51 — features of 5–10 — protecting assets 42 — fl exibility 6 — removing 52 — importance of 4–5 — role 39–40 — information needed for — powers 58 9–10 — special requests 58–59 — objectives 31 — taxation 44 — purpose of 253 — will, locating 40 — review, importance of executor, professional 48–51 7–8 — attributes of 50–51 — tailoring of 5–6 — cost 49–50 309 bindex 309 14 June 2019 8:16 AM The Australian Guide to Wills and Estate Planning executor (continued) — to charity 72–74 — case study 49–50 — deeming of 67–68 — reasons for appointing 48 — failure of 59–60 — investment 59–62 families, blended — refusal 67–68 — case study 143, 144 — timing 66–67 — estate assets 23 granny fl at interest 258–262 — mutual wills 143–144 guardians, appointment in — trusts and 140, 141–142, wills 64–66 225 family see also benefi ciaries; home care packages 286–287 families, blended blended families; trusts, income, splitting 135–136 family; trusts, insurance, income protection testamentary; will 245–246 contents; wills insurance, life — disputes see challenges to — as an asset 29 a will — case studies 22 — family structure 4–5 — intestacy and 22 — fi nancial agreements for insurance, life 241–246 225–228 — amount needed 245 fl exible care 287 — benefi ts of 241–242 funeral, arranging your 247–250 — business succession — executor’s role 41, 58–59 planning 231 — expenses 248–249 — case studies 242, 243, — personal details record 244 247–248 — importance of 241 — pre-arranging 250 — need for 243–244 — service contents 249 — partner, for life 242–243 — in superannuation gifting rules, Centrelink 258, 244–245 291–292 intestacy 19–25, 35; see also gifts in will see also estate wills assets; personal chattels; — administration 51 will contents — case studies 22, 23 — CGT consequences of — cause of 20 61, 62 310 bindex 310 14 June 2019 8:16 AM Index — consequences of, marriage, effect on will of unwanted 21–24 78–79; see also families, — defi ned 19 blended — dependants with mortgages, reverse 275–282 disabilities 24 — advantages of 278–279 — executor, lack of 22 — alternatives 279–281 — infl exible rules 21 — amount owed 277–278 — insurance, effect on 22 — asset disposal 280–281 — non-estate assets 23 — borrowing from family — safeguards, lack of 280 24–5 — Centrelink entitlements — tax consequences 24 278, 280, 281 — unintended distribution — defi nition of 275–278 of property 21 — default 277, 279 — unintended recipients 22 — disadvantages 279 — downsizing 280 joint ownership 15, 16–17, — estate-planning 29 implications 281 — case study 17 — eviction 279 — separation, effect of 17 — negative equity guarantee 276 life insurance see insurance, life personal chattels, distribution life interest 6, 123, 142, 257, of 7, 12, 21, 47, 59, 258, 260 62–63, 292–293 lifetime planning 203–250 powers of attorney — business succession and 205–224 estate planning 229–239 — advance care planning — cohabitation and (ACT) 211–212 fi nancial agreements — advance care planning 225–228 (SA) 214–215 — funeral, arranging your — advance care
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