#Matthew Brannelly Brisbane

[matthewbrannelly]

Estate Planning - Why Accountants should be Central to the Process

It seems that most articles on introductory estate planning cover the basic techniques of estate planning and administration, but fail to discuss how to begin practicing in this field, and what the role of the accountant might be. This article will hopefully provide you with a practical guide to getting involved in estate planning and administration based on my own experiences.

What Basic Estate Planning and Administration Involves

Estate planning can be divided into two topics: planning prior to death (premortem, or “traditional” estate planning) and post-mortem. Premortem is primarily about planning while post-mortem is more about administration, although both phases can include each. Accountants are needed in both phases of this planning.

Traditional planning involves asset transfer techniques (what method will be used to transfer assets at death). Such choices are not mutually exclusive and include the use of wills and the related probate process, living trusts, joint tenancy, life insurance, super etc. This planning can also focus on minimizing taxes (to the extent desired by the client) in light of the clients’ goals. For example, for many clients it’s possible to minimise tax by effective use of superannuation and trusts.

Post-mortem planning can include trust funding considerations—such as how to achieve the goals of plans while attempting to simplify the situation, how to fund and minimize income tax consequences, etc. Because tax laws are complex and continually changing, there may be ways to interpret the controlling documents with the laws at the time of death that may have not existed when the documents were signed. Administration involves applying the terms of the estate plan, generally at death.

The Accountant has a unique background and relationship with each of  their  individual clients that allows them to efficiently serve   clients’ estate related needs. Accountants can add value to  clients’ situations as a “gatekeeper” because you know your clients, and their unique needs and desires. Since accountants generally have contact with them at least once a year (when they prepare their personal income tax returns), you know changes in their personal situations that can require changes to estate plans. This knowledge can be used to benefit your clients either by suggestions that you might make for estate plan changes or for suggestions that the estate-planning lawyer should be consulted. You also know when changes in plans should be considered, especially for changes in the law and as those relate to your clients’ situations.

[matthewbrannelly]

Some Funny Things Seen in the Probate Office

In another blog we looked at four major problem areas that need to be considered in preparing a will. Here we just make a short inventory of a few things that folks have done to void their will. You may laugh at some but most are serious errors that many laymen might not be aware of.

Very well, then consider some very simple errors made in writing a will. People do these things!

  Failure to sign and date the will. That speaks for itself.

Failure to have two witnesses sign and maybe have it notarized. So you thought one was enough.

Forgetting that your witnesses cannot be beneficiaries of your estate or married/defacto to a beneficiary of your estate. Further, they must also be over 18 years of age.

Attaching or stapling papers to the will (or worse removing them). Why? Well, it raises questions of what might have been removed. Those little staple holes could really cause concerns with your heirs who thought you were itemised lists of items for them.

Erasing words / marking over them. Well, you probably knew that. You went to high school.

 Adding amendments incorrectly and confusing or contradicting the main clauses.

Forgetting to tell your executor and next-of-kin where it is located. Did you plan for a treasure hunt at your wake?

Failing to update your will whenever heirs die or you dispose or add property—even buying a car or a small sailboat.

Failing to make changes when your marital status changes and so on. You could be left with a null and void will if you get married and don’t write a new will. Likewise, if you divorce in some states your will becomes void.

Yes, a will is not written in stone but needs a certain amount of oversight. If there is the possibility of you committing any of these errors or oversights then contact a professional. You do not want your final wishes to be disregarded because you tried to save a few hundred dollars.

[matthewbrannelly]

Rover 8 Introduction Featuring Matthew Brannelly

How long has a corporate video for your firm been in your too hard basket and how many opportunities are you missing because of it? Most of us know the fastest place to expand our business audience is online.

Despite this awareness, however, many businesses overlook a gigantic platform such as YouTube (thinking of it as a place where our kids watch kitten videos), blind to the fact that billions of businesses are hungry for online information and using YouTube daily.

[matthewbrannelly]

Matthew Brannelly Is Your Marketing Strategy Working

Matthew Brannelly from Orbit Strategies Is Your Marketing Strategy Working.

http://www.orbitstrategies.com.au/

https://au.linkedin.com/in/mattbrannelly

[matthewbrannelly]

Even Famous People Die Without a Will

Inheritance disputes can be common when someone dies without leaving a will. This is particularly true when the deceased is famous or left behind a considerable fortune.

Despite the problems that arise when a person dies intestate, there have been many celebrities who passed away without completing the estate planning process. Here are some of the most well known names, as well as what happened to their assets once they died.

Bob Marley

The Jamaican singer-songwriter died of cancer in 1981 at the age of 36. While he was aware he had the disease, sources suggest his Rastafarian beliefs prevented him from writing a will. Marley’s estate continues to generate millions of dollars each year, but it has also been at the center of many inheritance disputes since his death.

Howard Hughes

In his early years, Hughes was known for his skills in aviation, film-making and engineering, but the eccentric billionaire eventually developed an obsessive-compulsive disorder and secluded himself away from the public. His $2.5 billion estate was eventually distributed between 22 cousins after a judge ruled him to have died intestate.

Abraham Lincoln

Former US President Abraham Lincoln died without a will when he was assassinated in 1865. Lincoln, who abolished slavery during his time in office, may be considered a surprising candidate for dying intestate, as he had been a lawyer. Nevertheless, his assets were divided between his surviving wife and children.

Stieg Larsson

The Swedish author is best known for writing the Millennium trilogy of books, starting with The Girl with the Dragon Tattoo in 2005. Larsson died of a heart attack in 2004, one year before his first novel was published and the series became a global best seller. His estate went to his brother and father, while his long-time partner Eva Gabrielsson received nothing because they weren’t married.

[matthewbrannelly]

Ian Healy's Captains Club Event with Leigh Matthews

Over 80 Captains and guests were inspired and entertained by ""lethal" Leigh Matthews and Heals at the Port Office Hotel. All there to support Aspirations 4 Kids in Sport. Matthew Brannelly as  "Vice-Captain "  is responsible for club logistics and the events we run each year.    

[matthewbrannelly]

Death of a Child and Grandkids Being Disinherited

The Pecking Order

Do you agree with the following statements?

Many grandparents love their grand-kids more than their children.

Parents generally love their kids more than their son-in-law or daughter-in-law.

Some parents do not like their son-in-law or daughter-in-law at all!

So one of the great fears that our clients have is that any inheritance they leave their children, upon their children’s death, does not go to their grandchildren.

HOW COULD THIS HAPPEN?

Mum and Dad die and leave an inheritance to daughter and son-in-law. The daughter dies and the money is left to the son-in-law because they have simple “mum and dad” Will.

Son-in-law is still young enough that he meets someone new and starts a new family (maybe even becomes a Brady Bunch family).

The money the family has left now becomes a part of the new family pool of assets. At best the grand-kids share is diluted, at worst it is redirected away from them altogether.

THE SOLUTION

A Testamentary Trust can include or exclude anyone from the list of potential beneficiaries, and back-ups can be appointed (often brothers and sisters) in the event of the death of a child.

The Family Court does have the power force access to assets of a testamentary trust in a divorce settlement but they are generally loath to do so. In this way, the trust acts as a very real (but not perfect) hurdle to the threat of divorce.

I tell clients all the time ...you can’t rule from the grave, but you can decide who will...

[matthewbrannelly]

Matthew Brannelly Brisbane - The 9 TO 5 AUSTRALIA

One of the most important characteristics of an individual is Attitude. Much has been written about this subject: how we can improve and manipulate thoughts and focus attention on pre-determined objectives.

Prior to this process of self-improvement, it is first necessary to identify the problem. Too many of us do not get to this the first base.

The general Australian attitude of “She’ll be right” has developed without recognition of its ranging impact.

In business, we are consistently confronted with the challenge of poor employee and management attitudes. All phases of the employee output and productivity are affected. Unless these limiting attitudes can be improved, the business will continually struggle. This limits competitiveness, both domestically and internationally.

Historically, Australia’s abundance of natural resources allowed us the security not to concentrate on human resource development which, to date, has been largely ignored.

Now, countries nowhere near as resource-rich have moved to positions of economic world leadership due to their attention to developing human resources as an alternative to natural resources.

With the fickle nature of the world economy and our negligence in developing human resources, Australia is faced with severe problems.

With a constant population, it is essential for our human resources to be developed. This is the first stage to regaining a competitive position in the world economy.

At the center of human resource development is the characteristic of “attitude”.

Australia’s easy-going lifestyle is symbolized in our “9 to 5” mentality that our attitude allows us to accept.

For Australia to again become successful in world trading, we must emphasize the development of human resources and begin with improving individual’s attitudes.

Our attitude to service is exemplified in the tourist industry. All too often tourist industry service is sub-standard when compared to our overseas competitors. As an example: The World Expo has been a great success. It is now recognized that the attitudes and motivation of those involved have been key to this success.

Improvement of Human Resources

Human resources, and particularly attitudes, can be improved in many areas.

Employers need to lead by example to encourage individual improvement by incentives etc. The work environment should be conducive and leadership strong, to ensure employees clearly see the direction and expectation of management.

Governments must also encourage individuals to act and alter their attitudes. One obvious area is through the taxation system, which currently acts as a disincentive to increased exertion and productivity.

Individuals need to see the benefits of their efforts.

Our education system requires upgrading to emphasize in children, from the early years, the benefits of seeking success, being progressive and not accepting the existing status quo. We need to instill an attitude in children that will carry them through their developmental years and create highly motivated individuals who will play an active and vital role in Australia’s future.

Just as sportsmen require years of training, so do individuals if they are to be valuable members of society. Performers need encouragement, not obscurity.

The development of human resources and attitude referred to above will, unfortunately, be a gradual process. Individuals will reject the notion of improving their own attitudes because they are content with the status quo and do not realize the long term necessity of this change. Australians are very short term in their thinking and this must be taken into account. This is one reason why the improvement process needs to start with the education system.

A Solution

To improve Australia’s human resources and develop an attitude aligned with economic success, all areas of society need to be active in providing incentives.

The education system, government, and business sector will need support from society f these improvements are to be successfully introduced. At present we are too easily distracted from this vital issue by superficial success, reflecting our short term attitudes.

Much can be learned from overseas migrants to Australia. They are characterized by surviving extreme hardship conditions, a strong desire to succeed and total commitment. Australians rightly feel threatened by this success.

Australians have no choice but to learn from them and implement the necessary social reforms that will ensure the success of future generations.

Australians need to become hungry for success and development. If we do not take remedial action soon to improve our human resources, it may well be an Asian hand that feeds this hunger.

[matthewbrannelly]

Power of Attorney - What you Need to Know

ENDURING POWER OF ATTORNEY: WHAT YOU NEED TO KNOW

Appointing an attorney is a critical part of your estate planning. Here is what you need to know to make sure your wishes are carried out accurately and completely. There are two types of powers of attorneys: general and enduring. The general power of attorney is common in the business context and takes over when you choose to hand over control. The enduring power of attorney allows the attorney to take over decisions when you are unable to do so yourself. The choice of the person who will make decisions on your behalf if you are incapable of doing it for yourself is a critical one. Here are 3 things to consider.

WHAT TASKS SHOULD I ASSIGN TO THE ENDURING POWER OF ATTORNEY?

When you choose your power of attorney, 2 of the most common types of tasks assigned to them are health-related and finance-related tasks. You may need them to make health decisions while you are incapacitated, in a coma or have had a serious accident and cannot speak for yourself. You are trusting them to make the same decisions that you would, so it is best to choose someone who understands how you would think about these matters. Some of the most common finance-related tasks include paying one’s bills while you are in the hospital or otherwise unable to care for yourself –such as in a nursing home.

PICK YOUR ATTORNEY WITH CARE

Some people are scared to give anyone power of attorney. They worry this person will boss them around and run their life. This is actually quite rare. But it is critical that you choose someone that you trust and that you have very good communication with. They should understand exactly how you want things taken care of. Notice that they do not have to agree with all of your decisions in the same way –but you do want someone who you are confident will take care of everything just as you would do so.

NAME A BACKUP

This is something that many people neglect to do when choosing a power of attorney. Not only do you want to choose someone but you also want to select a backup, in case anything happens. The person could be unexpectedly out of the country, seriously ill themselves or your relationship could have a falling out and you could change your mind about wanting them as your power of attorney. Selecting the individual who will have your enduring power of attorney is a big decision. Because of how important it is to get this right, we now have our own specialist in Estate Planning and Business Succession. Call the office today to arrange a meeting -before it’s too late.

[matthewbrannelly]

Brisbane Bandits (1989–98) Matthew Brannelly – Foundation Chairman

The Brisbane Bandits were a foundation team in the Australian Baseball League which was bought by a private owner and shut down in 1999. The Bandits have now been resurrected as a team in the new Australian Baseball League which is due to start in November 2010. The Bandits won the ABL Championship in 1994 and finished 2nd in 1997, going down to the Perth Heat in the championship series. The Bandits only competed in the first 9 ABL Championships, but had intentions of re-joining the ABL Championship in following Seasons.

The Brisbane Bandits were established in 1989 by co-founders Tom Nicholson and Vince Askey as a privately owned baseball franchise in the inaugural Australian Baseball League. Nicholson ran the entire franchise as the General Manager overseeing all operation of the Bandits. Askey, the Director of International Operations, forged relationships with Major League Clubs, starting with the San Diego Padres and later the New York Yankees. Askey also served as a television commentator for ABL games aired on the ABC Network. Both Askey and Nicholson also served as Directors on the ABL Board of Directors.

Foundation Chairman of the Board was well known young business identity Matthew Brannelly who prior to this was the Founding President of the Brisbane Junior Chamber of Commerce.

Mike Young, ex Major League and Australian Team coach was the inaugural coach. Mike went on to be the Specialist Fielding Coach for the Australian Cricket Team.

In their initial season the Bandits were based at Lang Park. The rectangular field was well suited to rugby league and soccer but not baseball. To offset the short left field a 50 foot high wall was installed. In 1990, the team moved to the iconic Brisbane venue, the RNA Showgrounds ( or Brisbane Exhibition ). The lighting and circular field surrounded by historic grandstands provided a family friendly venue and is currently where the Brisbane Bandits in the new Australian Baseball League play. The team maintained this home venue till their championship winning 1993–94 Australian Baseball League season.

In the 1993/94 season the Bandits won the Championship series against the Sydney Blues. The Blues had finished the regular season as minor premiers and had home field advantage. This was not enough though as the Bandits won 2–0 to claim their only title.

From 1994 the Bandits changed homeground to QEII Stadium in the city's south eastern suburbs. This venue was originally built for the 1982 Commonwealth Games.

In the 1995–96 Australian Baseball League season the Bandits finished the regular season as minor premiers. This provided home field advantage for the first week of the playoffs. However they lost to the Waverly Reds.

In their last season, the Bandits played at Holloway Field, the place where the Claxton Shield team, Queensland Rams would play for the next decade. Due to a lack of a suitable venue the Bandits did not compete in the 1998–99 Australian Baseball League season. Many of their players transferred to the nearby franchise, the Gold Coast Cougars, who won the championship that season.

The original Bandits developed at least one Major League player. Cameron Cairncross, a left-handed starting pitcher, went on to play for the Cleveland Indians in 2000 as a relief pitcher.

The Bandits, as all teams in the ABL, had foreign imports each season. At least three of these went on to play in the Majors in the USA, including Tim Worrell and Homer Bush of the SD Padres, and Kevin Jordan who played for the Bandits while with the Yankees organization, but ended up play in MLB for the Philidalphia Phillies.

The Bandits were the only franchise in the ABL that maintained the original owners and leadership longer than any of the other ABL franchises.

[matthewbrannelly]

$15,000 Will ..not Finished a True Story

An accountant referred to an important high-value client to a well know law firm almost 2 years ago. This is the traditional way professional firms cross-refer.

Last week, at the end of  year-end meeting, the accountant casually asked “ how did the will update go “ only to be informed his client got so confused and disenchanted he gave up and walked away from the process – despite being $15,000 out of pocket.

Now admittedly there was a BFA involved as well, and the story is not about the cost , but is about the lack of follow-through and communication between the accountant and lawyer regarding the difficulties the lawyer encountered in dealing with what was obviously a complex matter.

This client became one of the 80 % of SME clients I encounter without adequate estate plans in place.

It also re affirmed my view that accountants who want to become true trusted advisors have an opportunity to step up and take control of the estate planning process – as no one else is.

[matthewbrannelly]

Reduces NFP telecommunications costs by 22%

Background – National Seniors Australia had an annualized telecommunication cost of $180,000 across three different service providers.

The Challenge - Transform the way National Seniors Australia manage their telecommunications.

The Solution – Negotiated a release from a long-term phone advertising contract, increased data networks from copper to fibre and improved and streamlined vendor relationships and issues management.

The Results – Total annualized savings will be over $40,000 in the first year (representing an overall cost reduction of 22%). 2019 projections will show an overall savings of $72,000, representing a 40% overall savings outcome.

To find out how the Orbit Hub could assist your organization uncover cost savings contact matt.brannelly@orbitstrategies.com.au