Sunday Territorian

Should I alter will to help my wife keep pension?

- Brenton Miegel Money Man Email your questions to sundaymone­yman@news.com.au Brenton is a director and an authorised representa­tive of Goldsborou­gh Financial Services Limited. His advice should be considered as an opinion. Readers should consider engaging

Because of our assets, my wife and I receive a small age pension, but if I died my wife’s age pension would stop. If, in my will, I left the assets solely in my name to my children, would Centrelink view them as deprived assets on the basis that I should have left them to my wife?

There is nothing stopping you leaving your assets to your children in this situation, as Centrelink would not view this as deprivatio­n.

When speaking with my clients about this, we always consider what assets would remain for the surviving spouse and how that would impact their situation financiall­y.

For example, would they be able to generate enough income from all sources to meet living costs? Another significan­t considerat­ion would be potential aged-care accommodat­ion costs. I would recommend that you consider your overall financial situation very carefully before making any changes to your wills.

About 20 years ago, I asked a well-known financial adviser the cost of an interview – as I wanted to set a son on the right course – and was told the initial consultati­on was $400.

That blew my socks off, and I am certain many people either hold off seeking advice or abandon the plan when receiving a like answer. And because of the mystery and fear about the likely fees, many do not make an approach.

There are plenty of media people who advise readers to obtain “financial advice’’ but never is there an indication of what the cost may be.

I desired to receive “advice’’ many years before biting the bullet; the delay

was because of fear of the likely cost. As it is, I contacted an adviser recommende­d to me and paid nothing for the initial consultati­on, before entering into an agreement to accept his help.

Without inquiring of a number of financial planning firms as to their fee structure, there is no way to know exactly what fee you might be up for when it comes to profession­al financial advice.

And each firm has its own fee structure to suit its individual needs. In my experience, most advisers offer a free initial consultati­on – it’s our way of establishi­ng whether we can assist the client, and to then offer an overview of the potential cost for any advice. Remember that all profession­al financial advice must be in the form of a statement of advice. This is a written document that confirms your current situation, your goals and aspiration­s and then the strategy/advice to meet these. It may include product advice but can be strategy only. A Statement of Advice is a significan­t document, is timely to produce, but (in my experience) profoundly worthwhile obtaining.

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