I am a single woman in my 40s, never married and with no children. Is it necessary for me to have a will? My understanding is, when I die, my assets would go to my parents if they are still alive and if they are not, then the assets will automatically go to my siblings. I don’t have life insurance, but I do have a house (under mortgage), super and a share portfolio along with some cash in the bank. I am genuinely curious whether I need a will or not? Or am I missing something I don’t know or not aware of?
My legal expert says the short answer is yes. You have significant assets, so probate will be required. Distribution isn’t ‘automatic’ and requires the court to review an intestacy application which could be costly and complex to prepare for your grieving family as well as requiring them to trace all your assets including what shares you have, your superannuation and your bank details.
There’s no reason to put your family through additional drama when you pass away, so it’s best to make up a simple will.Credit: Simon Letch
A probate application with a will is much easier than a probate application without a will. Why put your family through more drama? Just do a simple will.
I am keen to invest in property to help my children onto the property ladder. Is it better to buy property in joint names with my children or set up a family trust to make a property purchase? If through a trust, how does one go about setting up such a thing?
You don’t want to be buying property in joint names with your children because there can be capital gains tax consequences if or when you decide your share of the property should be transferred to them.
These would also apply to any purchase through a family trust. I think a better option is to encourage them to buy a property in their own names, and you could supply a deposit, either by way of a gift or as loan. This will give them the opportunity to make choices, so they can learn. Your accountant is the appropriate person to talk to about setting up a family trust.
I am uncertain if I have read you correctly but if you own an investment property and sell it, can you contribute the proceeds as a downsizer contributions?
You must comply with the criteria to be eligible to make the contribution. You must have owned your property for a continuous period of at least 10 years, which is usually measured from the date of your original settlement when you purchased the property, to the settlement date when you sell it.
The property being sold must be your family home (main residence) at the time of the sale, or it must be partially exempt from capital gains tax (CGT) under the main residence exemption.
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