Estate Planning
Everyone needs to have a valid Will in place, to ensure assets are distributed effectively to preferred beneficiaries. It is imperative that your estate planning is handled by the appropriate professionals, when you have interests in companies, trusts or superannuation.
Only assets held in your personal name can be bequeathed to beneficiaries through your Will. Assets held by trusts, including superannuation funds, are not covered by your Will, and must be dealt with separately. The Appointor of a trust controls the assets held in trust. Therefore, you need to ensure that your successor Appointor is the person you want to control the trust assets, after your passing. Superannuation can be securely transferred using non-lapsing binding death benefit nominations or auto reversionary pensions.
Testamentary trusts can provide asset protection and tax effectiveness for your beneficiaries. A testamentary trust is a discretionary trust, which comes into existence when you die. The rules of the trust are embedded in your Will, and look very similar to most trust deeds. They have been around for decades, and were mostly used for tax reasons. However, they are now frequently used to protect wealth for the next generation.
A proper estate plan requires the input of an experienced accountant and estate planning lawyer. We work closely with experienced estate lawyers to ensure our clients have the best plans in place to transfer their wealth, in the most effective manner.
Estate plans should be put in place as soon as possible, and reviewed periodically over the years. Most of us do not know when we will pass away. The consequences of not having a comprehensive estate plan in place, can be horrendous.
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