Estate planning involves much more than having an up to date Will. It is important to ensure that your assets are distributed in the most effective manner and without adverse tax consequences for your beneficiaries.
Estate planning involves considering what will happen to your assets upon the death of you or your partner. You may want to consider how to structure your estate to ensure it is distributed according to your wishes and ensure your family's interests are protected and tax minimised.
As part of your estate plan, you will need to consider the following questions:
• Is your Will up to date?
• Do you have adequate life insurance?
• Are there any tax consequences how your assets are distributed?
• Do you have a binding death benefit nomination for your superannuation? and
• Whether an enduring power of attorney is appropriate for you?
If you own a business, you may also need to consider implementing appropriate business succession plans.
The disposal of assets in accordance with your Will may have tax consequences, including capital gains tax (CGT), that you should consider when drafting your Will and creating your estate plan. There are many strategies you can use to help make your estate plan as tax-effective as possible for your dependants and beneficiaries.
• The proceeds of an insurance policy paid from a superannuation fund are tax-free if paid to dependants.
• Distributing an asset (rather than the proceeds of the sale of that asset) to a beneficiary can defer any CGT liability.
• Using discretionary trusts can help minimise the tax a beneficiary pays on receipt of an inheritance.
• Using testamentary trusts can be an effective way to provide an inheritance to young children.
At SMC Advisers, we can help you investigate which strategies will be appropriate for your personal situation.
Our Estate Planning service is an important part of Family Wealth Management and will help you protect your wealth and provide peace of mind including:
· Review your current situation and document your desired outcomes
· Investigate the most tax-effective options to distribute your wealth to family and beneficiaries
· Provide you with advice on the appropriate financial structures to manage your affairs so you can make informed decisions
· We can consult with your solicitor or develop a document for you to use when you brief your solicitor.
For more information read the full Estate Planning fact file
or contact us to arrange an appointment to discuss your estate plan.