Private Client

Your guide to wealth management, preservation and protection for private clients

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June 2010

As lawyers who practice in the area of succession law, we are constantly stressing the importance of doing all we can to ensure a client’s estate planning wishes are met when they pass away. Unfortunately, this can sometimes be a difficult message to communicate because of a perception that all that is required is a valid Will. I say to clients that just about anyone can prepare a Will (whether you are legally trained or not), but preparing an estate plan that will achieve a client’s goals requires some specialist knowledge, some co-operation on the part of accountants, lawyers and financial advisors, and a client who understands the importance of the job at hand.

The May 29-30 Weekend Australian magazine contained an article by Richard Guilliatt titled Wishful thinking. The article talks about the ability to challenge the deceased’s Will. Two case studies are discussed, both of which illustrate the time, expense and emotional anguish endured by the people involved in resolving the disputes. While there is no guarantee a legal challenge can be avoided, there is no doubt using an experienced succession lawyer can help clients reduce the risk of an estate plan coming unstuck. When reading the article by Guilliatt, it is very easy to form the view the only winners out of the estate litigation process are the lawyers. While this is unfortunate, it is probably true. Litigation is expensive, emotionally draining and, where family members are involved on opposite sides, often results in permanent damage to relationships. Clearly, we should all be doing what we can to avoid it.

This edition of Private Client, as always, is designed to give you and your clients an understanding of some of the issues that need to be addressed in building an effective estate plan so that the risk of dispute is minimised. The following articles are contained in this edition:

1. Mutual Wills – Sean McMahon looks at an estate planning strategy which overcomes some of the difficulties associated with making provisions for blended families.
    
2. The importance of getting it right—enduring powers of attorney – A properly drafted EPA appointing the right people is a crucial element of a client's estate plan. Laura Hanrahan has some tips.
    
3. The cost of claiming from an estate – Brit Ibanez looks at the circumstances in which parties to family provision litigation may lose the right to have their costs paid out of the estate.
    
4. Government announces SMSF licensing exemption for accountants, GONE!!
    
5. Capital protected trusts – One option for addressing the estate planning needs of people in blended families is to establish a capital protected trust. Evelyn Abadines has the details.
    
6. McMahon Clarke Legal debt recovery services
    
7. Staff promotions

For this edition of Private Client, click on the link below or copy it into your web browser:

http://www.mcmahonclarke.com/uploads/documents/PCJune101.pdf

I hope you enjoy this edition of our Private Client. As always, if there is anything you would like to discuss further, then please call one of the Private Client team.

Regards

Sean McMahon
Partner—Private Client & Business Succession
McMahon Clarke Legal

Sean McMahon Partner 07 3239 2915 sean.mcmahon@mcmahonclarke.com

McMahon Clarke Legal specialises in legal services associated with funds management, capital raising and litigation and risk management for listed and unlisted entities. For a full list of our services, please visit the main part of our website at www.mcmahonclarke.com or email us at info@mcmahonclarke.com.

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