If you have a Will in place you may not think you need an Estate Plan. After all, it spells out the “who gets what” instructions regarding your estate, right?
“Successful retirement and estate planning can be complex. There are many legal, financial and tax implications that will not just take care of themselves.”
– Jason Roccasalvo, Partner, TAG Financial Services
Unfortunately, the estate you’ve specified in your Will may not include all of your assets. By law, your Will doesn’t include assets such as:
- Jointly-held property
- Company assets
- Assets held in trust
- Proceeds of life insurance policies
To control what happens to these assets, you need an Estate Plan.
6 Reasons to Have an Estate Plan
A well-written Estate Plan can do more than just distribute all of your assets the way you want. It can also help:
1 – Your beneficiaries (i.e. your loved ones) to reduce/eliminate tax on the income generated when they receive their inheritance, and every year thereafter.
2 – Protect your beneficiaries’ inheritance from unfortunate events such as divorce and bankruptcy.
3 – Minimise or even avoid the death benefits tax when distributing your superannuation benefits.
4 – Guard against a beneficiary wasting their inheritance because of their spending habits, mental health, drug addictions, gambling or other vulnerabilities.
5 – Make capital gains tax savings on the assets distributed through your estate.
6 – Ensure your assets are securely passed to your preferred beneficiaries rather than, say, an in-law or former spouse.
What should you do now?
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). © 2019