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Chapter 17: - Coggle Diagram
Chapter 17:
Wills
Executed by a
testator
(person who wrote the will)
Criteria
21 years and above
Of sound mind
Soldier even under 21 years old
Grant of Probate
Must be granted by court to link
the executor to the will
Must be witnessed by two persons present and
signed at the same time as testator
Nomination
Nomination Framework
Trust Nomination
Nominate vs Appoint
Assign a policyholder
Nominate a beneficiary
Appoint a life insured
Statutory trust is automatically created
Protected from creditors as it is
owned by his beneficiaries
Requires consent of all nominees to make changes to nominees
Transfer all rights of policy ownership
to beneficiaries
Revoking
Making
Complete Trust Nomination Form
obtained from
insurer
legally binding
Completed in presence of
two adult witnesses
at least 21 years old
Cannot be nominees or their spouses
Trustee
At least
18
Nominee can be one
Only spouse and/or children
can be nominated
Revocable nomination
introduced after September 2009
Revoking
Presence of
2 adult witnesses
at least 21
Cannot be made if
trust nomination
has been made
Execution
Death benefits payable to nominees while
living benefits payable to policy owner
Complete freedom for selection of nominees
Criteria for nomination
Must be both
policy owner
and
life insured
(1st party policy)
Policy owner must be
at least 18 years old
Application
Life Insurance
Conflicts between
wills and nominations
Most recent validly executed
instrument will be recognised
if revocable nomination
Intestate Succession Act 1967
when deceased has not
set forth will
Intestacy can delay
distribution of estate
9 Rules
Spouse
All to spouse
Importance is decided based
on order of rules
Trust
Types
Express
Constructive
No choice
Implied
when something happens to original trustees so trust will happen in a different manner
Benefits
Will not expose estate
to public scrutiny
Estate is protected from creditors
Smooth transfer of assets
to next of kin