5 Estate Planning tactics to preserve Family Wealth

Over the years we have witnessed first-hand what can happen when a client’s Estate Plan hasn’t been structured correctly.

We think it’s important to preserve the Family Wealth and pass assets onto future generations, below are 5 key points to think about and act on.

1. Start with a Structure review

Assets can be held in different names/entities based on your past purchases, inheritances or marital splits. A review of what legal entity is the owner of assets should be undertaken as there are ways to “structure” the ownership of assets to assist and minimise the passing of family assets to the next generation. Effective structuring can save on financial or taxation consequences.

2. Super is not part of your Estate

Why does super need to be reviewed? Super does not automatically form part of a person’s estate. Whilst we see most clients do have a Will in place, often their superannuation has not been considered.

TIP: A member can elect to include their death benefit in their estate by completing a binding or non-lapsing death nomination in favour of either their financial dependants or their legal personal representative. This is a very important election as a correct election can save tax where a financial dependant exists.

3. Plan your Business Exit

If you run and own your own business, you’ll need to think how someday you will exit that business. The processes you put in place surrounding your exit can have a huge impact on your retirement plans both in time and money.

TIP: Business owners need to prepare a plan for their exit, their successors, how the successors will fund future ownership and how you address legal & tax issues. This should ensure your assets are protected and you are compensated for all of your hard work in retirement.

4. Consider Aged Care fees

Be aware of Aged Care fees and possibly create a strategy to fund future care to ensure family assets are structured to pay for your own Aged Care costs. Potential Centrelink issues should also be considered when creating this strategy.

TIP: Ensure a percentage of investments have the liquidity to be readily available to fund accommodation payments, basic daily care fees and other fees for additional services.

5. Seek ongoing support

We often come across clients who created an Estate Plan and then have never updated or sought advice as their circumstances change. Not only do family assets change but so do family members via marriage, divorce, births & deaths etc.

TIP: Regularly update your Accountant and Investment adviser with family updates regardless of  how big or small to help protect your family assets and to have peace of mind.

If you have any questions feel free to contact Kirk Jarrott on 07 54379900.