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Introduction

The basic function of a trust is to separate control and ownership. The result of using a trust is that assets are protected and profits are distributed in the most tax-effective way. There is no 'one-size-fits-all' type of trust. The trust you use depends on many factors, such as the type of asset or business, financing, income type, marital status, susceptibility to being sued - just to name a few.

Whilst there are many types of trusts the two most commonly used are:
1. Testamentary trust;
2. Discretionary trust.

Introduction

Do you worry about what will happen to your family when you leave this world?

If so, a ‘testamentary trust’ may be the answer. It is established as an outcome of a will and only comes into force in the event of your death. The major benefits of such a trust are...

Introduction

A Will is a key document in your estate plan, but it’s not just a case of recording who gets what. Different assets may require different management.

As the list below shows, your estate consists of all the assets you own and control.

Introduction

Estate planning is about more than just writing a will. Asset ownership during your lifetime and after your death is dependent upon the type of asset, whose name the asset is in prior to death, and the governing documents for each asset. To explain the potential consequences, consider the following:

Introduction

Usually, you can do whatever you like with your money while you’re alive. But what control do you have over your assets when you die? It’s an interesting thought that most people don’t like to dote on, however with more wealth being created through superannuation funds, it’s a thought that will require action at some stage – and the sooner the better.

It has been estimated that members of the baby boomer generation will pass about ...... trillion dollars to their children or grandchildren over the coming decades. This wealth will in some cases come in the form of family businesses moving to the next generation. In others, it might be more passive investments, such as shares and cash. Astoundingly, more than $....... billion in property is expected to be transferred through inheritance by 2025.

Each of us might only have control over a small piece of this inheritance bonanza. Nonetheless, how much thought have you given to what it will mean to your beneficiaries and how they'll remember you?

Introduction

When you’re here to supervise your worldly affairs, your voice, which reflects your current views, is heard, and more often than not, heeded. But when you’re not here, what voice will be heard? Will it be your most recent voice; an old voice from several years ago; or the voice of government legislation? Unfortunately, all too often, it is voice number two, or worse, three.

If your Will and other estate arrangements have not recently been reviewed, you risk your voice not being heard. If you have overlooked making a Will, the government decides how your estate is to be distributed. This reinforces the importance of keeping all of your estate arrangements current.

Introduction

If you’re the eldest sibling in the family, or deemed to be the “most responsible”; if you’re seen to be a good friend by someone; or a fine upstanding citizen by others, chances are you will be asked to be an executor of someone’s will.

After you’ve enjoyed the warm feeling of being wanted, just pause for a moment and take stock of what it really means to assume this most important role.

Introduction

Put simply, a Power of Attorney is a legal document that allows another person to act on your behalf. There are three different types of Power of Attorney (POA) arrangements - a General POA, an Enduring POA and Medical POA. The differences are important to note for the purposes of managing your estate.

Introduction

It is generally believed that death is final. However, a grieving family knows only too well that the death of a loved one can trigger events that may drag on for years afterwards, especially when it comes to sorting out the estate of the deceased person. Outlined below are some suggestions that may help reduce the burden on those you leave behind.

Introduction

“Estate planning” is arranging your financial affairs now so your wishes are met when you die. It can be a complicated area but following some simple steps and knowing the rules can help you avoid many of the traps.

Introduction

Occasionally we send an email to someone’s work only to find they are no longer employed there and a dutiful administrator has closed the account. Have you ever considered who’s going to close your personal online accounts after you die?

Introduction

We often hear about the mega-rich leaving extravagant sums of money in their will to their pets. The scale of these sums usually obscures the personal motivations behind the bequests such as the $13 million left by real estate tycoon Maria Assunta to a stray cat she found wandering the streets of Rome.

Eccentric as this may sound, it is impossible to leave any amount of money to a pet. Animals do not have the same standing in law as humans and are considered to be property. As such, they cannot directly inherit money or other property.

Introduction

More than 45% of Australians don’t have a valid Will. If you die without one, your hard-earned wealth (your estate) will be distributed according to the rules of intestacy – a government-determined formula. That may not divide your estate as you would like, and if your family consists only of distant relatives your assets could end up enriching your state government’s coffers.
If that’s convinced you that a Will is a good idea, how do you go about making one? There are three main options:

Introduction

Everyone understands the importance of a Will, but how do you ensure your wishes are carried out when you’re no longer around? Who can contest your Will and what are their chances of success?

Maud’s four children hadn’t visited in years so she left her fortune to an obscure charity for wayward arachnids. An extreme example, certainly, yet many would argue that Maud’s wish to bequeath her estate to spiders should be respected.

Fundamentally, Maud’s situation is common: lonely elderly person, charity, disgruntled family members. Who could challenge Maud’s Will and under what circumstances?

Introduction

The busier we get the more we tend to put off the important things. Often the last thing we want to think about is our will or other estate planning issues. Living life always seems to get in the way! Sometimes that’s not our fault, especially if there has been a crisis or major change in our lives. The irony is that’s exactly when these issues should take a higher priority.

If you have experienced any of the following it’s time to act.

Introduction

Many of our best laid plans rarely follow through exactly as we might have hoped. However, it’s another story when it comes to planning for what happens after we’ve left this planet. Our ideas about who will benefit from our estate could potentially change often during our lifetime.

Estate planning ensures that when we die, our assets can be passed promptly and tax-effectively to the people we love or to the charities we support.

Just like life, an estate plan is not static. As life changes, a will should be adjusted to ensure it remains relevant. There are many events that can trigger a need to review an estate plan, for instance:

Introduction

Australia has emerged from a mix of wonderful cultures, many of which came to our country in search of a new life in a new country with great promise. The courage and commitment our forefathers brought with them from often difficult lives elsewhere has been the basis from which the Australian ethos of “never give up” has flourished.

Many started small businesses and worked long, hard hours to build successful family empires. A proportion of these have made good pickings for overseas giants with thick wallets.

The commitment and courage continued into the next generation, who are now adults in their 50s and 60s… the baby boomers. The boomers carried on the work ethic of their parents but along the way decided they wanted more life balance than their parents. Time-saving devices and leisure became essential commodities in their lives… but they worked hard for it.

Introduction

Aussies are a generous lot – you only need to look at the way we open our hearts and pockets when a natural disaster strikes and there have been plenty of opportunities over recent years. This generosity is not only limited to these awful events, with thousands of Australians supporting multiple charities on an ongoing basis. But what if you wanted to start your own charity? You don’t have to be wealthy to do it.
The following are just three of the options available in setting up your own charity.

Introduction

Most of us would rather not think about the death of a loved one, although, like paying tax, it is inevitable. But what happens when you are a beneficiary in a deceased estate?

Introduction

It would be nice to think our debts magically disappear upon death however, this is not the case. If you haven’t planned in advance, financial debts can have a significant impact on those you leave behind.

Introduction

“Isn’t estate planning all about looking after the assets of the wealthy when they die? What has estate planning got to do with being a single parent?”

Of course estate planning is about ensuring that there is an orderly transfer of assets between generations for the rich, but every person will leave something behind when they die, so estate planning is for everyone – rich or otherwise. The key aim of any estate plan is to ensure assets are transferred to support the right person(s) at the right time. And this is particularly relevant for single parents with young children.

Introduction

Benjamin Franklin once famously said “In this world nothing is certain but death and taxes.” Beneficiaries often inherit tax liabilities along with bequeathed assets, however with careful planning these implications may be reduced.