Tag Archives: Will

What Business Owners Cannot Bequeath in Their Will

If you are a business owner, it is important to understand what you can and cannot bequeath in your will to loved ones or business partners. There are rules and regulations surrounding which of your possessions can be transferred through your will. Keep reading to find out what business owners cannot bequeath through a will.

Several ownership interests cannot be transferred in your will, including:

  • Property held in a Trust – Ownership rights for a Trust cannot be transferred to another person via your will. The beneficiary of the Trust will receive ownership for assets.
  • Property held in Joint Tenancy – Joint Tenancy is an equal ownership right, whereby you and your partner own an equal share in the property. Your half cannot be transferred to another person, and instead will be automatically transferred in its entirety to the other joint owner.
  • Superannuation accounts – you can nominate a beneficiary within your superannuation account. Your balance is distributed to this person and cannot be included in your will.
  • Beneficiary accounts – if you have a life insurance policy, you must nominate a beneficiary. The money will be transferred per your policy and cannot be transferred by requests in a will.
  • Digital property rights – the law does not allow you to leave passwords in wills for the transfer of digital accounts to a living person. It is best to ensure that all parties have administrator rights, so information or accounts are not lost.

It would be best if you kept this in mind when drafting up a legally enforceable will, as they can create complications in the future. Consult a professional to help you plan for those you leave behind. Contact The Farm Protectors today for peace of mind to your business and your family.

What Assets Are Not Covered by My Will?

Assets included in your Will are called estate assets. These are assets that you own, in your personal name, at the time of your death. Estate assets are dealt with in your Will, but people often include items that are not allowed to be included. So what assets are not covered by your Will?

Superannuation

Superannuation is not an estate asset and Will therefore not automatically pass per your Will. What happens with your superannuation will be determined by either: a binding death benefit nomination, the discretion of the fund’s trustee, or the rules of your superannuation fund.

Assets you own jointly with someone else

Any assets that are owned jointly with another person are automatically transferred to the surviving partner. This happens in accordance with survivorship laws. These assets often include bank accounts, property, shares and term deposits. However, if the other joint tenant has predeceased you, the asset Will at this point form part of your estate and therefore pass per your Will, so it is a good idea to include it.

Assets in a family trust or other trust

Family trust assets belong to the trust and will be dealt with in accordance with the trust deed.

Assets owned by a company

Assets from a company Will remain owned by the company. However, any shares you have in the company are part of your estate assets and can be left with whomever you wish in your Will.

Life insurance policies

When you set up your life insurance policy, you can nominate a beneficiary. The proceeds Will generally be paid directly to this beneficiary, without the need to be included in your Will. If you want your life insurance policy included in your Will, you need to nominate your estate as the beneficiary.

If you wish to review your assets or establish an estate plan, please don’t hesitate to contact us today.