Recent tax, company, superannuation and trust law changes are all likely to have a significant affect upon the amount to be distributed from an estate and the proportion of an estate particular beneficiaries may receive. Even relatively small estates are likely to have unforseen and undesirable capital gains tax consequences. The GST is now also a new consideration for estates. It will be payable either by the estate or beneficiaries in certain circumstances. Some estates will need to pay back GST credits received by the deceased prior to death.
Executors have more responsibilities than ever before.
Executors can be personally liable for errors or omissions in administration of an estate. A carefully drafted Will can minimise income and capital gains tax. A carefully drafted Will can reduce the potential for legal claims. Furthermore, it will provide the willmaker with peace of mind that their affairs are appropriately catered for in the event of death. If a person dies without a Will, or with a Will that is invalid or partly invalid, then significant hardship can occur to the deceased's family.