How to lead in the age of digital disruption: starting the digital change journey

There’s no shortage of people and agencies in the market who say they “do digital strategy”. Our observation is that a lot of them have a pretty narrow field of vision when doing so. Frequently, it’s essentially a marketing plan for the digital version of a product or service. This is legitimately the domain of digital and advertising agencies.

KDK Bulletin 25 August 2016 – 4 hot topics

See KDK Bulletin 25 August 2016 for Deloitte’s insight on the tax agenda, the Australia Institute says banks need more regulation, and the Australia/China joint economic report. A Matter of Opinion is by Pitcher Partners’ Brendan Jones on how to fund property investment through unlisted property trusts.  This week’s expert is BDO partner Bernard Curran. For more go to http://bit.ly/2bCJYem

How to fund property investment through unlisted property trusts

With banks tightening their lending criteria in property markets it has become increasingly difficult for individual investors to find the equity to directly acquire property assets.

Unlisted property trusts provide a mechanism for investors looking for exposure to commercial, industrial and retail property to participate in ownership of such asset classes when they may not have the financial capacity to invest directly themselves.

KDK Bulletin 18 August 2016 – 4 hot topics

See KDK Bulletin 18 August 2016 for Minter Ellison’s insight on foreign investment in Aust, BT Financial Group says transfer to retirement strategy remains a valid option, and Tourism Australia looks at the value of tourism to Australia’s economy. A Matter of Opinion is by Hall & Wilcox’s Emma Woolley on acting as an executor.  This week’s expert is Macpherson Kelley partner Andrew Douglas.

For more go to http://bit.ly/2b0k5G0

What do I do as an executor?

Acting as executor: Will I or won’t I?

For most people, acting as an executor is not an every-day experience. They may be appointed by a relative or friend, or sometimes in their professional capacity as a result of being a trusted advisor. Many people have heard of the term ‘executor’, however do not know what an executor does.

For most first time executors, they will find themselves asking ‘what does an executor do’, and ‘what are my responsibilities’?

Who is the executor and do they have to act?

An executor is the person nominated in a Will to administer the estate of the Will maker after they die. Most people nominated as an executor will act in that role. However, in some cases where someone does not want to act, they can renounce their appointment.

Are professional qualifications required?

No professional qualifications are required to act as an executor. If there are complexities with an estate, the executor is able to obtain assistance from professionals such as accountants and lawyers.

What do I do as an executor?

The duties of an executor include:

1. locating the Will (a copy will normally be found with the deceased’s ‘important papers’ or with their lawyer and financial advisors)
2. acting in the best interest of the beneficiaries of the Will
3. protecting the assets of the estate (such as maintaining any insurance policies on any estate assets)
4. determining the assets and liabilities of the estate
5. applying for a grant of probate
6. collecting estate assets, paying any liabilities and distributing the estate in accordance with the Will.

Obtaining a grant of probate (Grant)

The Grant provides formal acknowledgement from the Supreme Court that the Will was the last Will, and that you are appointed as executor. The Grant also provides the executor with legal title to deal with the assets of the estate.

Many institutions require a grant before they will transfer assets over a certain value (often $25,000), or where there is real estate.

It generally will take anywhere between two to three months to gather the background material and prepare the relevant documentation. Once prepared and submitted to the Supreme Court, it will take another two to three weeks to receive the Grant.

Potential issues for executors

Possible claims against the estate

Any person who believes they did not receive adequate provision for their proper maintenance and support under the Will can make a claim for further provision. Any claim must be made within six months of probate being granted. If an executor distributes all of the estate before the six month period expires, and a claim for further provision is then made, an executor can potentially be personally liable. If there is a concern about someone making a claim, it is best to wait until the six month period had ended.

Taxation obligations

The executor is also required to finalise any tax returns for the deceased, as well as for the estate (if required). The best approach is to seek advice once the assets and liabilities of the estate have been determined to ensure any tax liabilities are dealt with before the estate is distributed.

Communication with beneficiaries

All beneficiaries should be identified and advised of their entitlements under the Will from an early stage in the administration of the estate.

Issues can arise where beneficiaries’ expectations regarding the payment of entitlements are not realistic and they expect an immediate payment of their entitlements under the Will. In most cases, payments of entitlements will not occur until 6 to 12 months from death. Keeping the beneficiaries informed regarding when they can realistically expect a payment can avoid many issues.

Emma Woolley is a partner at Hall & Wilcox lawyers.

KDK Bulletin, 11 August 2016

See KDK Bulletin 11 August 2016 for PwC’s global report on how older workforce can add $78 bn to Aust economy, the Grattan Institute’s advice to Productivity Commission on super review, and how international education is Aust’s largest service export. A Matter of Opinion is by KPMG Banarra’s Richard Boele on social licence to operate – it can scuttle your project or shut down your industry.  This week’s expert is Grant Thornton’s partner Carina Becker. For more go to http://bit.ly/2bhlS9q%20

No social license to operate? Beware, it may scuttle your project

Infrastructure participants have been talking about the concept of social license for some time. Initially created by the mining sector in an attempt to come to terms with the growing influence of social pressure on their investments and operations. The idea was that the local communities and society could either grant or revoke an organisation’s license to operate.

KDK Bulletin, 4 August 2016: Equal opportunity barriers, Industry funds outperform banks, Deloitte’s IPO update, Social media and reputation damage

See KDK Bulletin 4 August 2016 for The Human Rights Commission report on cultural bias in the workplace, SuperRatings data on industry funds outperforming banks, and Deloitte’s half-year IPO update. A Matter of Opinion is by KPMG’s  Greg Daniel on the potential reputational damage of Tweeting. This week’s expert is Hall & Wilcox partner Heather Gray. For more go to http://bit.ly/2aT54FF