If you have been active in this area, it’s important to include your crypto assets in your Will. Your legal team and beneficiaries need to be aware of your activity and be able to access your account.

A brief definition of cryptocurrency

You may have heard the terms ‘crypto’, ‘blockchain’ and ‘Bitcoin’.

Cryptocurrency is the term used to describe digital or virtual currency that uses cryptography for security and operates independently of a central bank. The most well-known cryptocurrency is Bitcoin, but there are others such as Ethereum, Dogecoin, and Polkadot.

Cryptocurrency transactions are recorded on a decentralised digital ledger called a blockchain, which ensures transactions are secure and cannot be altered. Like other forms of investments, cryptocurrency can be bought and sold on exchanges.

Including your cryptocurrency investments in your Will

When you pass away, your legal team, your Will Executor and your beneficiaries need to know what to do with your belongings, and this includes any cryptocurrency investments you have made.

Part of the reason this is important is because crypto is relatively new. There aren’t clear legislations around distributing this kind of asset after someone passes away in Australia. If you don’t make it very clear what your wishes are, your beneficiaries may never even know you have a crypto account. If they are aware of it but you haven’t left any instructions about distributing the proceeds, they can wind up in a dispute, which is costly, frustrating and time-consuming.

When you create your Will, keep in mind that you may need to update it. Crypto investments have proven to be volatile so if you leave someone your entire crypto ‘fortune’ and nothing else, you need to keep an eye on its value and rearrange your Will if things change dramatically.

What to include in your Will in relation to cryptocurrency

When including cryptocurrency in your Will, be clear about this asset but don’t necessarily include the login details for your crypto wallet (which is where your crypto is stored) in the Will itself.

Make sure your Executor has access to information about the account, but store the login and password details somewhere safe, for example with your lawyer.

How you divide the proceeds of your crypto investments in your Will is up to you but speak to your legal team if you need specific advice.

Tax implications of cryptocurrency in your Will

Another important consideration when including cryptocurrency in your will is tax.

Cryptocurrency is treated differently than traditional assets for tax purposes, and it is important to understand the implications of transferring your cryptocurrency assets to your beneficiaries.

In Australia, cryptocurrency is treated as an asset for tax purposes, which means that any gains or losses on the sale or exchange of cryptocurrency are subject to capital gains tax. If you transfer your cryptocurrency assets to your family or other loved ones after you pass away, they may be responsible for paying capital gains tax on any gains that occur after your death.

If your investments are significant, you may need to speak with an accountant as well as your lawyer to get an idea of how growth in crypto value may affect your beneficiaries’ tax.

Give yourself and your family peace of mind about all your assets, including cryptocurrency. Reach out to Legal Affairs Lounge to start preparing your Will today.

Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.

A business may also restructure in order to grow or change direction. It can be a catalyst for positive change, especially when executed with a clear understanding of numbers and purpose.

The positive results of a restructure may be:

• Increased cash flow
• More manageable debts
• Better control of expenses
• Greater flexibility to operate in the current market
• A more competitive position in the market
• Increased profits
• A more compliant business

To start the process, your legal and financial team will do all or some of the following:

• Analyse current and recent performance (across sales, profits etc)
• Conduct forecasting and predict future outcomes
• Review a range of strategies and solutions
• Develop an action plan to move forward

This is why some clients reach out to us for help to restructure their business:

Change in market conditions

Market conditions are constantly evolving and companies must adapt to remain relevant. Changes in consumer spending or demand and the emergence of new competitors can significantly affect a business’s performance.

If a business is struggling to keep up with these changes, it might be time to restructure. For example, if a business is experiencing declining sales due to new technology being introduced to the market (think Blackberry vs iPhone), restructuring can help it realign its operations to meet these new demands.

Declining sales or financial difficulties

Financial difficulties can arise for many reasons, such as poor management, high debt levels or an unexpected downturn in sales. If a business is struggling financially, it may need to restructure to address these issues.

Restructuring can involve cost-cutting measures such as layoffs or reducing expenses, to improve the company’s financial position. In some cases, a company may need to restructure its debt or seek new financing options.

Expansion, diversification or strategy

As a business grows, it may need to restructure to support its expansion or diversification efforts. For example, if a business wants to start operating in new markets or launch new products, it may need to restructure its operations. This could involve hiring new staff, investing in new equipment or reorganising the company’s management structure.

A company might restructure in order to take on more debt and limit the personal liability of the director/owner. For example, it may make sense for a business that was originally operated as a partnership to move to be a more formal company, so the entity stands alone.

Changes in ownership or leadership

Changes in ownership or leadership can also be a catalyst for restructuring. If a business is sold or acquired, the new owners may want to restructure to align the business with their strategic goals. Similarly, if there is a change in leadership, the new management team may decide to restructure to improve the company’s performance.

Regulatory compliance

Regulatory compliance is a critical aspect of doing business in Australia. Companies must comply with a range of regulations, including tax laws, employment laws, and industry-specific regulations. If a company is struggling to comply with these regulations, restructuring may be necessary to address these issues. For example, a company may need to restructure its payroll system to ensure compliance with employment laws or reorganise its operations to meet new industrial regulations.

If any of the above apply to your business and restructuring is an option, Reach out to Legal Affairs Lounge today.

Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for legal advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.

So, how do you update a Will after separation?

What is a Will?

Very briefly, a Will is a legal document that appoints a beneficiary or beneficiaries of your belongings and assets in the event of your death.

What if I don’t update my Will after separation?

Your Will is a legal and binding document, regardless of when you signed it. If you die before you update yours, the wishes that are legally documented will be used to distribute your assets, even if you have since changed your mind.

This can result in assets going to a person who is no longer part of your life.

How does divorce affect my Will?

Under Australian law, divorce affects a person’s Will in different ways depending on the state or territory you live in. In some circumstances, a divorce can completely nullify a Will, but this is not something you can rely on. Plus, in these cases, you could be left without a Will, which can cause its own complications.

In most states, though, a divorce will nullify any gifts or bequests appointed to a former spouse unless a judge believes it is still your wish that they should receive them.

Why update a Will after separation?

It is very important to note that while an official divorce can nullify parts of your Will, separation does not.

If you are separated but yet to be divorced, then your Will is still likely to be legally binding.

This is why you should move quickly.

Updating your Will

• Assets

The first step is to review your existing Will and identify any changes that need to be made. It’s very likely that you have appointed your former partner as an executor or beneficiary, so you need to remove them.

You also need to consider who will be responsible for distributing your assets after your death. If you have your former partner down as your executor, aim to remove them and appoint a new executor instead.

It is also important to review any trusts or other arrangements that you have in place. If you have a trust for the benefit of your former partner, you may need to modify or revoke it to ensure that your assets are properly distributed according to your wishes.

• Estate

In some cases, a separation or divorce can result in a complex estate planning situation. For example, if you have children from a previous marriage or relationship, you may need to consider how your money and assets will be distributed to ensure your children are adequately provided for. You may also need to consider how your assets will be distributed if you have a blended family.

If you have children under the age of 18, it is important to appoint a guardian in your Will. The guardian will be responsible for the care and well-being of your children if you pass away. If you have recently separated or divorced, you may need to review your choice of guardian and consider whether your former partner is still an appropriate choice.

Get support to update your Will after separation or divorce

Your needs and wishes should be priority as you go through a separation. When you work with an experienced lawyer, the process to update your Will and make sure it is legally binding should be straightforward.

Give yourself and your family peace of mind. Reach out to Legal Affairs Lounge to start preparing your Will today.

Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for legal advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.

To help you nominate the right person, here’s a rundown of what a Will executor’s tasks include.

What do executors of Wills do?

The executor of a Will has to:

• Administer your estate after you pass away
• Ensure all debts are paid
• Close your accounts
• Oversee the disbursement of inheritances in accordance with your wishes

It is also usually the executor’s job to arrange your funeral. They can use funds from your estate to pay for it.

The Will executor may need to go through the process of probate. This is a court order granted by the Supreme Court of Queensland that confirms:

• the Will is valid
• the executor has permission to distribute the estate

Probate is usually required if you leave behind property and a substantial amount of money. Grants of probate usually take around 20 business days and the process includes:

• gathering supporting documents such as an affidavit
• publishing a probate notice
• waiting 14 days
• submitting a probate application
• responding to Requisitions from the court.

After probate is confirmed, the person responsible for executing your final wishes and finalising your estate will have to answer the following questions:

• What do you wish to happen to your remains?
• Who needs to be notified about your passing?
• What will happen to your property and belongings?
• Who is entitled to what percentage of the money that comes from the sale of property and other assets / who are the will’s beneficiaries?
• How will belongings and funds be distributed?

Your executor will ideally have access to your accounts after you pass away. If you have a list of providers for them to get in touch with, they will find the process much easier. Consider your:

• Phone and internet provider
• Gas/electricity provider
• Insurance providers
• Subscriptions (e.g. Netflix etc)
• Gym memberships
• Housekeeping services etc

Think about bank, superannuation and investment accounts as well; it can take a long time for your executor to access accounts (executors generally can only access your bank accounts once probate has been granted by the Court.)

Ask your lawyer to hold onto these details for safekeeping.

Who should execute your Will?

Being executor of a Will can be stressful and time-consuming. When you nominate someone, keep this in mind.

Most people choose a family member or trusted friend. Sometimes, two people are nominated, either to execute the Will together or as an alternative if the first choice is unavailable or incapable of taking on the responsibility.

Often, siblings are nominated as joint executors. This can help ensure everything is kept ‘fair’ during the Will execution process.

Some things to consider include:

• You can nominate someone who is a beneficiary
• You can add a clause to your Will to ensure your executor is compensated for their time and efforts
• If you appoint joint executors, make sure they are able to work well together
• You can nominate a lawyer or trustee instead of a family member. Usually, payment for their services will come out of your estate but make this clear when you ask them to act as executor, so they don’t come up against pushback from your family.

If you do nominate a family member, they can work in conjunction with a solicitor to ensure they get everything right.

Make your executor’s life easy

A rushed or unclear Will can make things very difficult for an executor. The more questions you can clearly answer in your Will, the better.

Write down your wishes in a formal Will, store relevant information safely with a lawyer and have everything prepared formally and correctly so you don’t create unnecessary stress for your executor when the time comes.

The right approach to Wills and executors will give you and your family peace of mind. Reach out to Legal Affairs Lounge to start preparing your will today.

Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for legal advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.