Childhood expo highlights the need for insurance

I recently attended the Childhood Expo at Newcastle Panthers that was organised by the Child Alliance and couldn't believe how many businesses and products there are to service the needs of families with young children.  There were educational products and services, health products and services, child care services and much much more, in fact it was quite overwhelming!

All the products and services though had something in common, they all promoted family harmonisation as being the holy grail of a happy life and they're right.  Let's face it, if everything is going well at home pretty much everything else is going well too.

What did amaze me though was that people who were intelligent, caring parents that were looking for more options to improve their own lives and their children's were completely ignorant about their financial security.  Let's face it, we all want to give our kids the best start in life, with good health and educational opportunities, it's normal, in fact I tend to think it is hardwired into most of us to hope that our kids will do better than we did.

I spent most of my time at the expo talking to young parents, asking them about what they think is the most important thing they can offer their child besides love?  Nearly all of them answered "financial security and opportunities to be their best".  My next question was how do you give that to them, their answer "by working hard".  A great answer, as long as you can work hard.  Most of the people I spoke to had no personal insurance outside of their superannuation fund and even then, most didn't know how much they had or had even considered how much they need.

Seriously, I can't believe that people who obviously love their children and want the best for them can be so uneducated and ill informed about what could be the most important financial decision of their children's lives. 

Imagine just for a moment, the picture of the perfect family, happy, healthy and successful - there is a terrible car accident, the Mum is left fighting for her life and the father is killed instantly....what happen's to the kids?  Does anyone know?  Not one person I met could tell me what was going to happen to their kids, if something happened to them.  Most ummed and ahhed and then mumbled something about their retired parents taking the kids. 

The fact is most people don't have a plan, they usually don't even know they need one because we all walk around thinking we are going to live forever and for those of us that have come to terms with the fact we are going to die we like to picture it happening very peacefully at the ripe old age of 90 or more, after fulfilling all our ambitions and dreams.  Unfortunately for most people, that is not how it will happen - somewhere along the line there will be accidents, illnesses and maybe even premature death at a fairly young age.  While we can't always control what happens in our lives we can have a plan to deal with it.  Just like you teach your kids the family emergency plan in case of fire or flood etc, you need an emergency financial plan to help you to deal with life's unexpected turns.

Do you know what will happen to your kids if something happens to you?

If your not sure, I would urge you to sit down and talk about it with your partner, your parents and especially your insurance adviser and your solicitor.  Every parent needs a plan to make sure their children are protected even if they can't be around.

 Call us now on

02 4925 6125

we can help you with your own personal emergency plan.

THE PITFALL OF NOT HAVING A PROPER WILL

Article by Chris Ryan of Chris Ryan Legal
Level 1 14 Church Street, Newcastle, NSW 2300

DISCLAIMER: This article is no substitute for legal advice and should not be read as such.  A will should only be prepared by a qualified solicitor after taking instructions regarding your own personal situation.

What is a Will?
A will is a legal document that sets out what happens to your real and personal property when you die.
To be valid it must satisfy certain requirements according to legislation and it should be tailored to your own personal circumstances.

Recently I bought 5 business shirts from a department store. The shirts were made by 3 different manufacturers. The sizes and fit were different for each manufacturer.  I used to think that size 44 was size 44 and that was that!  One brand I had bought previously and those shirts fit fine, the other's didn't.

In my laziness I didn't try the other shirts on, nor did I ask the salesperson for help, I thought I knew best.  Had I asked for help and tried the shirts before I bought them, I would have saved time in the long run and received a proper fit, first time.

There are no guarantees that the sizing or style of shirts won’t have changed the next time I buy a bunch of shirts. The risk of cutting corners with the shirts was not that great since the downside was either a second trip to the store for an exchange or putting up with a shirt that didn’t quite fit right. The risk of not getting your Will right is much more significant and it is your family which pays the price.

What happens when there is no Will?
If you die without a Will you die wholly intestate. If you have an otherwise valid Will and a gift in your Will fails, you may die partially intestate.

An intestate estate is distributed according to a regime set out in legislation. Under this formula, the entitlement to estate property works its way down from a surviving spouse through a chain of blood relations and if there are no relatives, the State of New South Wales gets it.

I recently had an inquiry from a relative by marriage of a 96 year old lady who passed away after all her beneficiaries and other blood relatives had died- she therefore died intestate and the State reaped the win fall as there were no other qualified beneficiaries.

No one need die wholly or partially intestate. A properly drafted Will which is revised at proper intervals can ensure that people or organisations of your choosing can benefit from your wealth.

Research has indicated that about 40% of Australian adults do not have a Will.

Why have a Will?

• To take control over how your Estate is distributed after you die.

• To avoid unintended beneficiaries receiving a share of your Estate (such as a former spouse, estranged child, or in some cases even the Government).

• To properly provide for your dependents (particularly if you have dependants from different relationships).

• To control the proportion of the distribution of your Estate (for example if you have given significant financial assistance to one of your children in your lifetime and believe that this advance gift should be taken into account with respect to the gifts to your children in your Will).

• You can nominate a guardian for your children.

• You can create a trust for your heirs so that your Estate can provide an income over time.

• Exploit certain tax advantages.

• You can make a gift to your Church or favourite charity.

What about a Will Kit?
Let me address the issue of Will Kits. A properly completed D.I.Y Will contained in the approved kits is perfectly valid but is it going to do what you want it to do? Sometimes what we think we want is not always practical, possible or desirable. What a Will kit won’t do:

• Advise you of all your options;

• Answer your questions in a way that makes sense and is relevant to you;

• Explain the operation of your Will so that you understand it properly;

• Help you choose an executor;

• Explain issues concerning superannuation and asset protection;

• Raise other relevant and significant issues which may not directly affect the operation of your Will, but may still have a significant impact on your family’s financial welfare after you die.

In extreme situations not having a proper Will can result in hardship to family members, significant reduction or wasting of assets and significant litigation against your estate.

The majority of Wills I prepare for my clients are what lawyers call “simple” Wills. These Wills are “simple” because the net Estate (after payment of debts) is left to one or more persons equally (sometimes a simple trust might be created for infant beneficiaries). This format, as it turns out, is satisfactory in most circumstances. All of my clients though who end up signing a simple Will after going through the process of considering their personal circumstances where I discuss with them the various issues which may arise and what their objectives are for their Will. Often this process involves conferring with other professional advisers (for example a financial planner and/or accountant). Sometimes a simple Will format is inappropriate. At the end of the process my goal is to have my clients understand the way their Will works and that this understanding gives them comfort and empowerment that their family, friends, church or charity will be properly provided for in accordance with their wishes after they die.

Getting back to the shirts for a moment, think of getting a qualified solicitor to prepare your Will as not just asking for help but going one better and getting the tailor involved- you get something which fits your needs.

There is no reason why all adults should not have a valid Will. If you don’t have a Will, there is no reason to wait- the best time is now. If you have a trusted family solicitor I encourage you to speak to them about either preparing or updating you Will if you haven’t done so in the last 4-5 years. Getting a Will prepared is as easy as talking with a solicitor.

If you would like to discuss with me any issue surrounding the making of a Will or like to have your existing Will reviewed, please do not hesitate to call me for a confidential obligation free chat on 0406913100.

CANCER - Australia's biggest killer

1 in 2 men and 1 in 3 women will be diagnosed with some form of cancer in their lifetime.

What is Cancer?
Cancer is a disease of the body's cells.  A healthy cell will grow and multiply in a way that is controlled according to it's genetic blueprint but some cells can change and that control can be lost.  The word cancer is given to a collection of these cells.

A Personal Story by Christie Birch

Just about everyone I know has been affected by cancer in some way.  In my own experience our family has been affected more than once.

My Mother was diagnosed with Hodgkin's Lymphoma when she was just 26 years old.  She had 3 kids under the age of 8, had never smoked and lived a pretty healthy lifestyle.  She spent nearly 12 months travelling to and from Sydney for treatment as there were no facilities here in Newcastle.  She was in fourth stage which meant very little to me as a kid, I just knew that the doctor's were going to make her better because that is what doctors do.  In reality my Mum was very ill, the cancer had spread and the odds for long term survival were not good.  Fortunately the doctor's worked their miracles and Mum put up the fight for her life and in her words there was some divine intervention.  26 years later she is still cancer free and has seen the marriage of her kids and the births of her grand kids.

Shortly after Mum's recovery my Grandfather was diagnosed with stomach cancer. Doctor's said that the cancer had gone to far and that there was nothing they could do.  They gave him 12 months to live but only 3 weeks after his diagnosis at the age of 61 he died.  He was one of three brothers who all died before the age of 62 of cancer.

During my highschool years my best friend's brother was diagnosed with testicular cancer at age 15.  Due to the embaressing nature of his symptoms he never sought treatment until the size of the tumour became physically obvious.  By the time he saw a doctor the cancer had spread to his lungs, his stomach and his kidneys.  He was given only a 5% chance of surviving beyond 5 years.  He started aggresive treatment and everyone started praying for a miracle.  He went into remission and is now aged 34 but still lives with the constant fear that the cancer could return at any time.

Next my family suffered the loss of my Uncle and my other Grandfather both succumbing to prostate cancer.  Shortly after this my father inlaw was diagnosed with prostate cancer also.  He decided to not take any chances, they had detected it early and he opted to have his prostate removed.  There was no evidence of cancer anywhere else in his body and so is living proof that early detection works.

Yesterday my Husband and I received a phone call from his Mother.  She had a skin cancer removed from her nose a few months ago and had a follow up biopsy done last week.  The news is not good, they didn't get all of the cancer and she now faces the possibility that the cancer has gone too far.  So we go back to our prayers that have helped in the past and pray that the news will be good.

I could go on and on with the names of friends who have been affected and those who we have lost and I am sure that as many of you read this you will take a moment to remember and honour those whom you know have been affected by cancer.

THERE IS GOOD NEWS......in Australia today 60% of all cancer diagnosis will be effectively treated.

1. Live a healthy lifestyle - prevention is better than a cure so don't smoke, avoid too much alcohol, eat a healthy diet, get some exercise and cover up when you are out in the sun.
2. Check yourself - be aware of any changes in your body and get to the doctor's as soon as possible if you notice anything unusual.  Early detection is paramount to your survival rate.
3. Support research - medical research costs millions of dollars every year.  There are a number of great organisations that raise money for this purpose.  Please support by giving what you can, you never know it just might be you or your loved ones that will be saved by a break through!

AUSTRALIA'S BIGGEST MORNING TEA
May 7th 2010 from 9.30am
Lifestyle House Boardroom - 671 Hunter Street Newcastle
RSVP by May 5th 2010

PLANNING FOR THE INEVITABLE

• In Australia the average life expectancy is now 81.4 years.
• In the last 12 months 116,000 couples were married, but over 47,000 were divorced.
• 10% of Australian workers are currently unable to work due to a disability or illness.
• 1 in 5 Australian adults will suffer from mental illness.
• 7.4 Million Australians are overweight.
• 100% of Australians will DIE!

I know, it seems like such a morbid thought but like the saying goes "There are only two certainties in life - Death & Taxes". It is funny though that something that is so certain makes us so uncomfortable to discuss with our loved ones, yet we all will have to face our own mortality sooner or later (later I hope)!

Most of us have seen the Will kit ads or the funeral plan and life insurance ads and even ads for the local funeral home. If you are like me they make you feel a little uncomfortable - like it is their personal responsibility to remind us all that death must conquer all. Just as I am getting comfortably deluded that my happy life will go on forever just as it is - proves that insurance salesman are human after all!

Our natural aversion to thinking about our own death often means we a unprepared and leave a mess for our families to deal with after we are gone. This is why it is important to consider Estate Planning.

WHAT IS ESTATE PLANNING

Estate Planning is planning for the process of passing on our assets and possessions to our beneficiaries and planning for their future with out you. It involves creating a Legal Will that reflects the wishes of how you would like your assets distributed and a Financial Plan that ensures your wishes can be met. If you are a business owner there are a whole lot of other issues that also need to be considered such as succession of the business and how any debts will be paid.

WHAT IS A WILL

A will is a legal document that sets out who received your assets after you die. It may also include your wishes regarding your funeral arrangements and appoint a guardian for any dependents under 18 years of age left without a parent. Your solicitor can help you draft a legal will and if necessary will work with your financial advisor to make sure the appropriate structures are in place to carry out those wishes.

THINGS TO CONSIDER IN ESTATE PLANNING

Have you considered your family's need for immediate funds following your death?

Does your estate have sufficient funds to meet your family's future income needs?

Does your estate have sufficient funds to clear any accrued debts?

Do you need to consider personal risk insurance to fund any short fall in your estate to meet your wishes?

Do you have a current and effective Will?

Have you chosen a responsible and trustworthy executor?

Have you considered the timing of the distribution of funds?

Have you taken steps to minimize the risk of you will being challenged?

Have you appointed guardians for your children?

Have you decided who to grant powers of attorney to?

Have you identified capital gains or any other tax issues?

Have you considered whether certain beneficiaries should receive an income stream as opposed to a lump sum?

Does the trust deed of your superannuation fund pay your beneficiaries a lump sum or a pension?

Do you need to make a binding death nomination to ensure your superannuation benefits pass to your intended beneficiaries?

Have you considered if you want to protect your assets if your spouse remarries after your death?

Have you allocated special bequests for valuable items such as jewellery and family heirlooms?

Have you noted any special arrangements, such as care for a disabled child or a child from a previous relationship?

Have you considered how your business or business partnerships will survive you?

As you can see Estate Planning is much more than just a Will. Most people are suprised by just how long this list is, but it is important to think about all of these things and to seek qualified professional advice from your solicitor and financial planner.

It is unfortunate but many family feuds have started with the death of a loved one who had no estate planning or an inadequate will. If you really love your family then take the time to make plans. Dealing with the death of a loved one is hard enough without all the worry and uncertainty.

Please remember this is intended for general information purposes only and should not be construed as financial, taxation or legal advice. Before acting on the basis of this information, you should consider the appropriateness to your own objectives, financial situation and needs. I recommend that your obtain qualified legal advice.