There are many factors that should be taken into account when thinking about the eventual distribution of your assets, and at Divorce Financial Planner, we are passionate about helping you to not only grow, but also protect your wealth.
A good estate plan should take into account both your personal and financial goals.
All assets of any value should be considered when developing an estate plan, including real estate, superannuation, business interests, investments, life insurance proceeds, personal property, art or other collections, cash and personal effects.
Thoughtful consideration, good advice, and the proper assembly of important documents will all ensure that your estate is handled as easily as possible in the event of your death, and that the wealth you have accumulated over your lifetime is not eroded by tax.
Capital Gains Tax (CGT) may have potentially the greatest impact on the value of your estate and how it should be distributed. In simple terms, CGT is payable when you dispose of an asset (which is held for the purpose of capital appreciation) and the value has increased relative to its original acquisition cost.
CGT is a complex issue, so it’s vital that you discuss your situation with a qualified financial and tax adviser before making any decisions.
For many people superannuation is their next biggest asset, after the family home. Many people are surprised to learn that it is the Superannuation Fund Trustee who decides who will receive their superannuation money when they die.
Careful planning and expert advice will ensure that your superannuation death benefit will go to the person you choose – not the person chosen by the Trustee – and that your beneficiaries pay the least amount of tax when your superannuation money is distributed.
Why it’s important to have a valid Will
A Will is a legal document that allows you to choose who should benefit from your estate and who should administer it.
If you do not have a valid Will when you die, you are said to have died “intestate”.
If you die intestate, your intentions will not be known and you will not have an authorised executor for your estate. Your assets may be frozen until the courts appoint an administrator. This may mean that your family suffers unnecessary financial hardship and emotional stress until your estate is settled.