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Solidify Your Legacy – Consider Your Estate Planning Needs

Your estate planning provisions give you a final say over your assets. It is probably one of the most significant legacies you will leave, so it follows that your will and estate plan are comprehensive and well considered. Leaving your assets to your beneficiaries is simple. Understanding the possible implications your estate can have on your beneficiaries is a whole other kettle of fish. For example, have you considered the tax implications your estate may have on your beneficiaries?

We can help you with your Estate Planning to ensure that your money and assets go to who you choose, as tax effectively as possible. Our team can help you to make provisions for your family in the event of your passing.

The structuring of your investment portfolio is of vital importance in terms of Estate Planning to protect your family financially upon your death. It is surprising how large an effect investment structure can have on the ones you leave behind.

Lucrum Financial Solutions will work with your solicitor to build an effective Estate Plan into your financial plan so that your direction never waivers. We will:

  • Liaise with your Solicitor.
  • Complete binding death nominations.
  • Prepare an Executors dossier.
  • Explore the most tax effective options for the division of your assets, including superannuation.
  • Consider the structure of your investment portfolio from an Estate Planning point of view.
  • Explore your insurance options.


Case Study

Protecting Your Assets

Tom met Zoe shortly after his separation from his wife, around 2 years ago. They have been living together for the past 12 months. Although Tom has quite a large portfolio of investments in his personal name, he believed his estate planning needs were relatively simple. In the event of his death, he wanted everything to go to Zoe.

It was very important for Tom that Zoe be financially secured should something happen to him. Under no circumstances should his ex-wife benefit from his assets in the event of his death.

Unfortunately, Tom passed away in a car accident without leaving a valid will. Under NSW intestacy law, all of Tom’s estate was distributed to his ex-wife as she was still legally married to Tom at the date of his death.

This outcome could not be any more contrary to Tom’s wishes.

Husband Passes Away

Simon dies leaving an estate comprising a personal investment portfolio valued at $1.2m.

He leaves his whole estate to his widow Sandra, who already earns $180,000 per annum.

Sandra is glad that Simon left her the investment portfolio which she will use to look after their minor children, Tom, Michael, Sophie and Olivia.

In the first year after Simon’s death, Sandra receives income of $72,000 from the investment portfolio. As Sandra already has income of $180,000, the tax that she will pay on the $72,000 will be approximately $33,480.

If Simon had established a testamentary trust instead, Sandra could have distributed the $72,000 trust income in that first year equally between the four children – that is, each child would have received $18,000 income. As each child would be taxed as an adult, the tax payable per child would be Nil. The tax saving would be $33,480 in one year alone!

These tax free distributions from the testamentary trust could be applied to meet the children’s living and education expenses.