mway Independent Business Owners (IBOs) have the potential to develop significant businesses in their distributorships which may be passed on from generation to generation by will, in accordance with applicable laws and Amway's requirements. This month we answer some commonly asked questions relating to wills.

What is a will and do I need one?
A will is a written legal document which details how a person wants their assets distributed after death. All IBOs should have a will, as it's the only way to make sure your estate, including your Amway business, is divided the way you would wish and that this occurs as quickly and as easily as possible.

What or who is an executor or executrix?
An executor is the person appointed in the will to see that the terms of your will are carried out, and to apply for probate - a court order confirming the executor's right to deal with the estate. A female executor is sometimes called an executrix. While this article refers to a single executor, it's generally sensible to appoint more than one.

What are Amway's requirements in relation to wills? Amway's requirements with respect to the transfer of a distributorship by will are contained in Section 6 and Section 10 of the Rules of Conduct. The requirements focus on ensuring that the Independent Business is passed on or managed by a person who has the relevant capacity, motivation and expertise to operate it. What is "relevant" will commonly depend on the particular facts and circumstances, such as the size of the Independent Business. In all instances, however, the beneficiaries should be, or become, Amway IBOs.










Does the executor have particular duties with regard to your distributorship?
It's important that the executor has the power, capacity and desire, if required, to manage your business on behalf of your estate prior to it being handed over to your beneficiaries. Typically, it may take at least six months before an executor can legally deal with the Independent Business, and the period of management before the beneficiary is able or prepared to take over the business may be long-term after that. It is, therefore, recommended that the person you appoint to act in the capacity of an executor:
  is empowered to operate the business;
  is qualified to be an Amway IBO in his or her own right;
  has the capacity and experience to maintain and improve the business;
  has the incentive to sponsor and train IBOs;
  is empowered to accept awards and recognition of personal achievements on behalf of beneficiaries.

Of course, if the executor does not have the recommended qualifications or skills, then she or he may be empowered by the will to appoint a manager for such a period and on such terms and conditions contained in the will and approved by Amway. Alternatively, the executor may be authorised to sell the business at the appropriate time if it appears to be in the best interests of the beneficiaries.

Should the executor be paid?
Every executor has the right to be paid for the work they carry out. It's also prudent to offer the executor an incentive to operate the business until the beneficiaries are ready to take over. Adequate remuneration may be arranged by allocating appropriate Amway rebate payments to the executor, or the manager, if one is appointed.

What are the requirements if the beneficiary is a minor?
If the beneficiary is under the age of 18, it will be necessary for the business to be placed under management, usually the executor, until the beneficiary is in a position to take over.

What is survivorship?
Where a distributorship is owned jointly by a married or de facto couple, the death of one spouse will generally entitle the remaining partner to have the complete ownership and management automatically transferred to her or him by the rule of survivorship. For Amway's purposes, the only pre-condition applying here is that the surviving spouse should be named on Distributor records as joint owners at the time of death. If the survivor was not so named on our records, then she or he will be entitled to assume sole ownership and management only if this is provided for in the will or is in accordance with other laws.

Does a lawyer have to draft my will?
In order for a will to be valid, it needs to be signed and witnessed properly and comply with other formalities. While there is no legal requirement that a lawyer must draft a will, it's generally advisable to seek a lawyer's help.

What will occur to my distributorship if I die without a valid will?
If you die intestate, that is, without a valid will, the court will appoint an administrator and your estate will be distributed in accordance with applicable rules of intestacy.

It's far better for you to make a will in order to ensure that your estate is divided according to your wishes and not according to the laws of intestacy.

For more information, please feel free to contact the Business Relations Department.