SVS Management Group Pty. Ltd.

NEWS FOR OUR CLIENTS

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• News update for December 2010.

THE ADMINISTRATION OF DECEASED ESTATES

One of the areas that separate SVS Management Group from other professional service providers is our executor and administration services for deceased estates. With over 30 years experience our company is well placed to handle the sometimes onerous obligations of being appointed executor/trustee in a person’s will.

Our original philosophy was that in "simple wills" we need not be involved and it was sensible (and cost efficient) to appoint the spouse as the sole executor. However, experience has shown that even in the most straight forward wills, peace of mind is an important consideration and the surviving spouse may be of an age, state of mind or physical state where some assistance is required. A professional person or organization should be appointed as at least a joint executor/trustee but care should be taken to ensure that fees are paid according to the amount of time taken in administering the estate and not on a percentage of the value of the assets within the estate.

In all other cases, it is recommended that a professional be appointed as it may be the case that a substantial amount of assets may need to be invested for a significant period of time. The Trustee Act was amended in 1996 to alter the investment obligations on a trustee, requiring him/her to act as a "prudent person" would and:

• act in the best interests of the beneficiaries, both current and future;

• invest not speculate;

• act impartially between different classes of beneficiaries; and

• take advice

Testamentary Trusts, life interests and possible challenges to the will are all factors that may need to be considered and our experience has been that most family executors need the assistance of a professional to carry out their obligations. Greater peace of mind is normally achieved if the professional has been nominated as trustee/executor and the family member has the role of adviser. These points should be discussed at the time that the will is made.