Estate planning

[voltage]

Thinking about updating my will. As most people on this site are passionate and consumed by direct share investing it is unlikely any beneficiary would be.
I would be interested in how people have planned for someone to take over their share portfolio. Should the shares be held in a trust?

[777]

Why would you want the shares held at all. The beneficiaries should be able to do what they wish with their share of the estate. You should not rule from the grave.

[Harvey Specter]

Why would you want the shares held at all. The beneficiaries should be able to do what they wish with their share of the estate. You should not rule from the grave.

Depends on the age of the beneficiaries, I agree.

[BIRMANBOY]

Sort of depends on who and what are the beneficiaries don't you think?

Why would you want the shares held at all. The beneficiaries should be able to do what they wish with their share of the estate. You should not rule from the grave.

[Brovendell]

In my will I have left each beneficiary a % of my estate. This allows for inflation distorting the values of different assets. Also, you wouldn't want to leave one beneficiary your shares in Wynard Capital and another your shares in Auckland Airport as a rough example. If you set up a Trust you can write a Memorandum of Wishes for the future Trustees as to how you would like your Trust's assets handled. The Trustees of said Trust are under no legal obligation to follow your wishes. I also am not a believer in ruling from the grave. However, I don't think beneficiaries should receive bequests at a young age excepting for educational purposes.

[voltage]

ok thanks for those points, you are quite right that you should not rule from the grave. I am concerned whether the beneficiaries have the financial acumen to make good decisions. There are many vultures out there. I suppose it is about getting good independent financial advice which is quite difficult to find these days.

[percy]

I am a trustee of my late friend's trust.His wife and their lawyer are the other trustees.
His wife keeps a bit of an eye on the market,although for her comfort we increased the amount of bonds, the trust holds.
Having the lawyer onboard means the trust is "water tight",as we do everything by the book..
The trust performs well.
Warning.Make very sure you have the right trustees.

[jmsnz]

ok thanks for those points, you are quite right that you should not rule from the grave. I am concerned whether the beneficiaries have the financial acumen to make good decisions. There are many vultures out there. I suppose it is about getting good independent financial advice which is quite difficult to find these days.

I am not sure there is actually such a thing as 'good independent financial advice'. This is an interesting topic as my wife and I get older and see our children become independent and (soon) into relationships themselves. Our 'solution' has been to establish a trust for them each into which they can, if they wish, dissolve our trust assets into. That way it gives some protection against them getting rogue partners and some independence for them to hold or sell assets to suit their individual needs. It will rely on good trustees as well though.

Still, at this stage my plan is that I will live (just) long enough to spend it all anyway!

[Harvey Specter]

Still, at this stage my plan is that I will live (just) long enough to spend it all anyway!

Good luck on your 'Estate planning'.

[voltage]

jmsnz, your decisions are what I am looking at, protecting assets from rogue partners. I have been to a few lawyers and the advice does differ from trust protection to no trust protection. Another way is to have a testamentary trust. Percy you are quite right about having the right trustees. Estate planning can get complicated very quickly.