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Workbook 2026

Estate planning

A practical guide to the transition of your family wealth pitcher.com.au

Contents 01 Your role in the estate planning process 02 Part 1: Passing on your wealth 03 A. Do you have a plan in mind to deal with your wealth upon your death? 05 B. Giving to charity 05 C. Potential inheritances 06 D. Family law protection issues 06 E. Foreign jurisdictions

Estate planning is a way to ensure your estate is passed to your chosen beneficiaries with certainty and in the most financially efficient and tax effective way possible. It involves preparing a plan while you are alive and well, to protect your wealth and facilitate passing it on to family members or others, in the way and at the time you want.

07 Part 2: Control of your wealth 08 A. Executor 09 B. Power of Attorney 11 C. Control of discretionary trusts 11 D. Who controls your superannuation entitlement?

Copyright 2025 Pitcher Partners Advisors Proprietary Limited ACN 052 920 206 Published by: Pitcher Partners Advisors Proprietary Limited Level 13/664 Collins Street Melbourne, Victoria Australia 3008 p +613 8610 5000 www.pitcher.com.au All rights reserved. This publication is copyright and may not be resold or reproduced in any manner (except excerpts thereof for bona fide study purposes in accordance with the Copyright Act) without the prior consent of the Publisher. Limit of Liability/Disclaimer of Warranty: Whilst the publisher and its respective employees and agents have used their best efforts preparing this booklet, they make no representations or warranties with respect to the accuracy or completeness of the contents of the booklet and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written promotional material. The advice and strategies contained herein may not be suitable for your individual situation. As such you should seek individual professional advice where appropriate. Neither the publisher nor its employees or agents shall be liable for any loss or profit or commercial damages including but not limited to special, incidental, consequential, or other damages. Pitcher Partners is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such. Pitcher Partners is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly’s behalf. None of Baker Tilly International, Pitcher Partners, nor any of the other member firms of Baker Tilly International have any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.

There is obviously a lot to consider when thinking about what might happen if you lose capacity or pass away.

Your role in the estate planning process Where to start We find that people are often put off estate planning because they fear the process will be too hard. They often don’t know where to start or what they will need to do. Our aim is to make the estate planning process as simple and accessible as possible.

Decisions to be made Keep in mind this is your Estate Plan. The task of Pitcher Partners as your advisor is to gather and assemble the necessary background information and provide you with a range of viable options to achieve your stated objectives. Your task is to clearly state your desired outcomes and any concerns you have in respect of those outcomes. You will need to make judgements about the advice and information you receive. This will involve the following:

Preparation Articulate your concerns and desires for the future Engage with the issues Set clear parameters for your advisors Identify key stakeholders that will be affected by your decisions Draw ideas and advice from appropriate sources

Decision Make clear ‘yes/no’ decisions Be prepared to explain the decisions

Execution Be appropriately involved in the execution of the decisions Support others involved in the execution of the decisions Set and adhere to clear milestones for implementing the decisions Ask for, receive and evaluate feedback about implementing the decisions, as appropriate Make adjustments to your decisions as necessary to achieve your objectives or requirements

Part 1: Passing on your wealth

Who do you want to pass your wealth to, in what form or structure, and at what time?

Part 1: Passing on your wealth A. D o you have a plan in mind to deal with your wealth upon your death? If yes, you may wish to set out your plan in general terms, at the end of this section. The following questions are designed to help you identify and clearly focus your priorities and desires in respect of passing on your weath. Question 1: Are you comfortable with your current strategy to maintain and/or grow the real value of your wealth before death? yes

Question 2: Are there any special circumstances of family members, e.g. education funding needs, vulnerability issues (eg. intellectual disability, elderly dependent parents, maintenance obligations of a child, drug dependence), past, current or possible future bankrupcty/ insolvency (due to occupational risk or personal guarantees given)? yes

Question 3: Are there any family relationship matters or any other risk issues that may impact your estate planning? yes

Question 4: Do you wish to pass specific assets or monetary gifts to particular beneficiaries? yes

Question 5: Do you want beneficiaries to have direct control of assets left to them from your estate? yes

Question 6: To what extent do you want your wealth to be retained within “blood lines” in the event of a relationship breakdown of your beneficiaries?

Question 7: Is there a specific age that a beneficiary must reach before they can take control of or have access to their inheritance? yes

Question 8: Are there likely to be significant differences between the ways that individual beneficiaries receive distributions from your estate? e.g. A different age or no access to capital. yes

Question 9: Do you wish for liabilities associated with specific assets to be transferred with those assets or paid out by your estate? e.g. Mortgages. yes – retain

no – pay out

Question 10: If you have children, have you considered who might act as a guardian for those children if both parents have passed away and they are under the age of 18 years? Have you considered what access to estate funds those guardians might have? e.g. Access to maintain a property that they own, access to pay for items for the children in situations where the guardians may also benefit. yes

N/A

Thoughts:

Question 11: If you control multiple entities, do you want to rationalise these entities now? yes

Question 12: Are there business succession issues that need to be addressed independently, or as part, of this process? This should be discussed with your advisor but will be considered as a part of your overall personal estate planning. yes

Question 13: Do you have any charitable intentions before or after death? If so, see Part 1 Section B of this booklet. yes

Question 14: Are any of the potential beneficiaries tax residents and/or citizens of a foreign country? Or, do you own assets in a foreign country? If so, see Part 1 Section E of this booklet. yes

Question 15: Are there any potential inheritances you may receive? If so, see Part 1 Section C of this booklet. yes

Question 16: Is there anyone who may fall into the categories of people who can make a claim against an estate? This can include a spouse or ex-spouse (if there is not a finalised family law settlement), a child including an adult child that you are estranged from or a step-child, a person who is financially dependent on you, a member of your household or a person who might reasonably expect to receive an inheritance from you. yes

Question 17: Do you want to protect your estate from a potential future partner of the survivor? yes

B. Giving to charity Your Estate Plan provides a great opportunity to create a meaningful and lasting legacy by leaving something to charity. This can be done by making a simple bequest to a chosen charitable organisation or by leaving money to a community fund, which pools donations from like-minded people to invest and distribute to charities. If you intend to bequeath a larger amount, or want to contribute to several different causes, it might be worth setting up your own charitable trust, prize or scholarship. Assets held in a charitable trust are managed and invested by the trustee to generate income year after year, helping to finance new projects long after the benefit of a one-off donation has passed. The trust is also perpetual which means that, unlike other trusts which end after approximately 80 years, charitable trusts continue forever, building capital and providing a structured, reliable source of income for chosen charities. You can specify in the trust deed the causes you wish to support – be it a specific charitable organisation, church, hospital, research project, arts program or educational institution – or leave the decisions to the discretion of the trustee. Alternatively, you can establish a scholarship or prize through the trust to benefit individuals rather than charitable organisations. By naming the trust or scholarship after a loved one or a special event you can create a lasting legacy.

C. Potential inheritances If you receive an inheritance during your lifetime, the wealth may ultimately form part of your estate. The form and legal structures in which you receive an inheritance can have a significant tax, asset protection and family law protection impact on yourself and possibly your dependents.

D. Family law protection issues If, on your death, your estate assets pass directly to your children, the assets become your children’s property and the Family Court can make orders about who should own those assets in the event of your child’s separation. The more integrated these inherited assets become in your child’s joint life with their spouse, the stronger the claim their separated spouse can make on those assets. You can pass on assets in an existing trust or new testamentary trust created by your Will, to lessen the risk that the Family Court will make orders about the ownership of those assets. While the Family Court is conservative in dealing with inherited assets, if your child has complete control of the trust and your child’s family uses and relies on trust assets, the chance of Family Court intervention is greater. However, if your child shares control of the trust or has no control (e.g. the trust has an independent trustee and a range of beneficiaries), it is less likely the Family Court will intervene and distribute the assets from that trust. There is, however, no guarantee that the Family Court will not attempt to deal with the trust assets in some way. At the very least, the Family Court may count trust assets as a financial resource of your child and may weight the distribution of other family assets more heavily toward your child’s separated spouse.

E. Foreign jurisdictions It is becoming common for people to own assets in more than one country, live in more than one country or have beneficiaries that live in another country. The existence of different laws in different countries can have a dramatic effect on an Estate Plan. Your Estate Plan can be significantly affected where: • You hold assets in another country • You have recently resided in another country • One or more of your proposed beneficiaries resides, or has recently resided in another country If you have assets in another country, you may need a separate Will, valid in that country, to deal with those assets.

Part 2: Control of your wealth

Who do you want to control your estate and other wealth holding entities in the event of your disability, incapacity, frailty or death. In this guide we will separately address the various roles that can exercise control over your wealth in various circumstances and ask you to consider, and if appropriate nominate the people you want to have in those roles. If you have a spouse, you will need to consider these questions both if you predecease your spouse, and if your spouse predeceases you.

Part 2: Control of your wealth A. Executor When you die, someone must be appointed to act on your behalf. This person is known as your legal personal representative. If you have a Will, this is your executor. Your Will apopints your executor but they must be confirmed, through a grant of probate of your Will, by the Supreme Court of your relevant state. Choosing your executor(s) is one of the most important estate planning decisions you will make. Executor’s responsibilities: • Arrange the funeral. Although, in practice, the family or next of kin usually take on this role, the responsibility rests with the executor. • Determine the estate assets and liabilities. This can be a time-consuming task, particularly if the executor was not previously aware of your financial affairs. • Apply for a grant of probate. The application for a grant of probate must include an inventory of assets and liabilities held by you at your death, the value of assets and liabilities and other documents prescribed by the court. • Discharge the estate’s liabilities. This includes checking the bona fides of any creditors and paying all debts. • Finalise the taxation position of the estate. • Distribute estate assets in accordance with the terms of the Will. • Act as representative(s) and successor(s) in any matter or transaction where you have entitlements or interests. • You may appoint multiple executors to act together or as replacements if your first choice cannot act. Have you considered who should be your executor? If you have a spouse, did you wish to appoint each other intially? yes

If not, who would you like to appoint as as your initial executor(s)?

Person 1

Person 2

Person 3

Person 4

Name Address Relationship to you If your intial executor(s) are unable to act, who do you want to appoint as subsitute executor(s)?

Person 5 Name Address Relationship to you

Person 6

Person 7

Person 8

B. Power of Attorney An Attorney is a person or entity that you appoint to act on your behalf in legal, financial and personal matters. An Attorney’s powers can be unlimited or can be restricted to: • particular circumstances • particular assets • a particular time frame, or • a combination of these factors An unrestricted power would mean that an Attorney could do anything that the Principal (you) could lawfully delegate. A Power of Attorney can be revoked at any time while you have capacity to do so, and ceases to be valid on your death. Your attorney for financial and personal matters can be the same or can be different people. You can appoint one or more people to act jointly or separately and you can also appoint alternate attorneys to act if your initial attorneys cannot act. Enduring Power of Attorney/financal and personal matters It is most common for Enduring Powers of Attorney to be utilised rather than General Powers of Attorney given they do continue to operate after the Principal has lost capacity. Most people give an Enduring Power of Attorney as a precautionary measure so that their affairs can be conducted by someone sensitive to their needs if they become incapacitated and are unable to attend to their own affairs. An Enduring Power of Attorney allows an Attorney to deal with the Principal’s financial, legal and personal affairs in the one document. The person(s) appointed to act in relation to financial matters are known as your “Attorney for financial matters”. This can include dealing with your bank, shares, paying bills and even signing contracts on your behalf. This Attorney can begin acting on your behalf immediately or at a later time, for example, if you lose capacity. The person(s) appointed as your “attorney for personal matters” makes lifestyle decisions such as where you might live, who can visit you and even day to day health decisions. This attorney can only act if you have lost capacity. Medical Treatment Decision Maker A Principal may appoint a Medical Treatment Decision Maker (MTDM) to instruct people about the type of medical treatment the Principal should receive. Importantly, the MTDM can only act when the Principal is unable to instruct the medical staff themselves. The Principal may appoint a sequence of possible MTDM, however only one MTDM may act at any time. It is also possible for the Principal to make an Advance Care Directive as either a “Binding Instructional Directive” or a “Values Directive” which is non-binding, to assist the MTDM in making their decisions. This is completed with your general practitioner. Do you have any existing Powers of Attorney in place that reflect your wishes? yes

Notes:

If you haven’t granted Powers of Attorney or would like to adjust your existing Powers of Attorney, to whom do you want to grant power? You can appoint one or more people initially to be your attorney for financial matters or your attorney for personal matters and also one or more people as alternate attorneys. They can act together (jointly) or have an option to act together or separately (jointly and severally).

Role

Attorney(s) for financial matters

Attorney(s) for personal matters

Name Address If you would like to include further attorneys or MTDMs, please include their details below.

Role

Alternate attorney(s) for financial matters

Alternate attorney(s) for personal matters

MTDM 1

MTDM 3

Name Address

Role Name Address Relationship to you Notes:

MTDM 2

MTDM 4

C. Control of discretionary trusts You cannot pass on direct ownership of any assets held in your discretionary trust(s). However, you can pass on control of the trust(s), and thereby give the people who take control of the trust direct control of the assets held by the trust. On your death or incapacity, the control of the wealth that has been accumulated in discretionary trusts passes to parties provided for in the trust deed. In order of relevance these are typically: (a) T he appointor(s) – The appointor(s) can change the trustee of the trust. The appointor can be a company, in which case the identity and voting rights of the shareholders and directors needs to be considered (b) T he guardian(s) – An appointor is typical in most discretionary trusts, but not all trusts provide for guardians The guardian(s) has to approve certain actions of the appointors or the trustees. Typically these are actions which are material, e.g. major capital distributions, introduction of new beneficiaries etc. (c) The trustee of the trust – This is ordinarily a company. The trustee controls the day to day operations of the trust For the long-term control of trust assets, it is critical that you choose trustees, appointors and if appropriate, guardians who will deal with the trust and its underlying assets in the manner you want. Very often, the trust’s deed will allow you to determine who will be the successor appointors.

D. Who controls your superannuation entitlement? The superannuation fund trust deed and superannuation law determine who is responsible to pay your death benefit, who receives your death benefit and in which form it can be paid from the fund. Generally, your benefits will fall into one or more of the following categories: • A superannuation balance that is yet to be paid (accumulation) • Pension (a number of forms are possible) For superannuation entitlements in accumulation and for the majority of pensions, the fund’s trust deed usually provides two control mechanisms over the allocation of the benefit: • Trustee discretion – the trustee decides who receives benefits on your death • Binding nomination – the trustee must pay the benefit in accordance with your nomination A combination of these is also possible. If you have a self managed superannuation fund (SMSF) and there are ongoing fund members after your death, it is usually the case that those members control the fund’s trustee and exercise the trustee’s discretion or are bound by any binding nomination. If you are the last remaining member of your SMSF and the last remaining trustee, the executor of your estate will be required to take control of the fund and exercise the trustee discretion or be bound by a binding nomination. If you lose capacity and are unable to continue to act as trustee of your SMSF, it is acceptable for a person who is your attorney for financial matters to become a trustee (if permitted by the trust deed). Who should take over control of your Self Managed Superannuation Fund?

Entity 1

Entity 2

In the event of your loss of capacity In the event of your death before your spouse In the event of your death after your spouse Notes:

Anna Hacker

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Client Director

Since day one we’ve been helping businesses, families and individuals intelligently frame their goals and make the most of their potential.

p +61 3 8610 5083 e anna.hacker@pitcher.com.au

Today, we’re one of the largest accounting, audit and business advisory firms in Australia. We work with middle market businesses, from family-run companies to renowned industry leaders and iconic brands. And help families and individuals manage their wealth across generations. If you’ve got ambition, we’re the team you want on your side.

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