Effective Estate Planning

Estate planning is important to you, your family and anyone you would like to nominate as a beneficiary.

Arranging your affairs now can ensure that there is a clear and tax effective distribution of your estate after your death.

You need to have the right structures in place to effectively manage complex business, legal, family investment and tax situations, and these require careful and considered planning. Estate planning is an ongoing process that should begin when you have a significant asset base. With families becoming increasingly more complex, estate planning has become even more important. This includes drawing up a will, establishing family trusts and nominating legal executors.

Developing an effective estate plan will ensure that:

• Tax payable is minimised
• The ownership of assets passes to the right heirs
• Assets are protected in any beneficiary needs to defend claims against your estate

Your Will

Estate planning often starts with the drafting of a will – a professionally drafted will should ensure that your estate is distributed to the intended beneficiaries.

A will can cover:

• How your assets will be allocated and to whom
• The establishment of trusts, such testamentary, protective or family trusts or even charitable trusts, for the ongoing protection and management of your assets
• Donations to charities
• Who will be appointed as your executor and trustee
• Who will be appointed as the guardian for your children if they are minors

According to the Australian Securities and Investments Commission, it is estimated that nearly half of all Australian die without a will, or “intestate”. If you don’t have a valid will your assets may be taken by the relevant State government.

Tax Implications

Depending on how you plan to distribute your assets your beneficiaries may end up with a large tax bill, because of tax implications, including Capital Gains Tax.

There are ways to minimise taxation, for example:

• Insurance policy proceeds from your superannuation fund are tax-free if paid to dependents
• A Capital Gains Tax liability can be deferred if the beneficiary is given an asset. If the asset is sold they may be liable
• Trusts can be useful in helping to minimise tax

Tax implications aside, it is important that you have a well-planned and maintained estate plan. There are many things to consider, such as;

• Choosing the right Executor
• Incorporation of Testamentary or Discretionary Trusts
• Setting up a Binding Death Benefit nomination or Non-lapsing Death Benefit nomination for your superannuation
• Appointing an enduring Power of Attorney and a Guardian

Ensuring that your estate plan works the way you intend it to work requires careful planning.  The team at Bentleys have the knowledge and experience to help establish the right plan for you and provide the right results for your beneficiaries.

Note: Some of these services must be performed by an Australian Financial Services Licence holder or through an authorised representative.

Want to know more about how Bentleys can help you?

Make a time for a chat with us today. We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.