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Estate Planning



Have you updated your Will or do you have your Estate planned for the inevitable? ensure that your estate is efficiently and tax-effectively distributed in accordance with your wishes after your death

Estate planning is the process of arranging your affairs to ensure that your estate is efficiently and tax-effectively distributed in accordance with your wishes after your death.



·         You can make gifts of assets or money that form part of your estate.

·         You can establish trusts for the ongoing management of your assets for the beneficiaries of your estate.

·         You can appoint an executor and trustee.

·         You can appoint guardians to look after your children (i.e. minors).

What Assets cannot be included in a Will?

·         An asset owned by a trust or any benefits received from a trust.

·         Life insurance policies where a beneficiary, other than the estate, of the insured has been nominated.

·         Superannuation and Retirement income streams which have legally valid Binding Nominations to or Retirement income streams which have a Reversionary Beneficiary.

·         Assets which are jointly owned.

Minimising Tax for your Beneficiaries

·         You can nominate your spouse and dependent children to receive your superannuation as a tax-free lump sum benefit in the event of death.

·     You can incorporate a testamentary trust into your Will for potential capital gains tax savings and ongoing income tax savings for your beneficiaries. With a testamentary trust, the Will maker can decide what assets are held in the trust and what the income and capital distributions will be and who will receive them.

·         You can consider holding your major investments, with the exception of your principle residence, in a family trust for potential tax savings for you as well as ongoing tax savings for your beneficiaries. With a family trust, the trustee can decide what the income and capital distributions will be and who will receive them

·        You can bequeath assets with low or no capital gains tax liabilities to beneficiaries with high marginal tax rates and vice versa for assets with higher capital gains tax liabilities.

Funding your Estate Planning

·      You should purchase adequate life insurance to ensure your spouse and children are able to pay off your debts, meet other expenses and continue to maintain a comfortable lifestyle.

·         If your estate has significantly high taxation liabilities, you may be able to protect your beneficiaries by purchasing an appropriate Life insurance policy with adequate cover to provide your beneficiaries with a sufficient lump sum to fund the estate’s taxation liabilities without eroding their inheritances.

·         If you are in business with a partner or partners, taking out an appropriate Life insurance policy with adequate cover on each partner can help protect the viability of the business and the financial position of the surviving partners if one of you were to die.

·         An appropriate Life insurance policy can be used to provide your dependents with an equal share of your estate. 

Minimising the chance of your estate being challenged

·         Ensure that your Will is legally valid, comprehensive and fair.

·         Hold your major assets in a family trust.

·         Establish binding nominations for your superannuation for certainty of the benefit being paid to your dependants.

·         Establish a testamentary trust which will come into effect on your death, to hold your major assets.

·         Grant your executors adequate power to distribute your estate in accordance with your wishes.  

Protecting your Assets

You can protect your assets by holding them in a family trust or testamentary trust.

The trustee of these trusts has legal ownership of the assets held in the trusts, and the assets will be protected from your dependants’ creditors. The assets are also protected from a dependant who is not capable of effectively managing money e.g. a dependant who is spendthrift. The appointed trustee should be a trusted person or alternatively, you may wish to choose a trustee company to be the trustee.


Source  :  Australian Unity Personal Financial Services   





What you need to know

 Any advice contained in this brochure is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.   Emohruo Financial Services is an authorised representative of AMP Financial Planning Pty Ltd ABN 89 051 208 327, AFSL 232706 and Australian Credit Licence 232706.



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