Inheritance Protection options
There are various ways for you to protect or invest the proceeds of a deceased estate, many of which have significant implications from a tax and wealth creation perspective.
They have two children and own their own home with a mortgage of $150,000. Jenny earns $80,000p.a. as a pharmacist and Bruce works as a vet earning $75,000p.a.
Jenny does not have any interest in the share market, and her bank has suggested she sell the shares and invest $200,000 in term deposits at the bank.
Some factors Jenny should consider:
- The taxation implications on selling the shares.
- Tax treatment of interest income versus dividend income.
- The advantages of repaying the mortgage early.
- Borrowing to invest in the name of the highest tax payer.
- Family law implications on marital assets.
In this case we would suggest to Jenny and Bruce a number of options to enhance their own joint wealth position and preserve the purchasing power of the inheritance.
Contact us if you would like a confidential appointment to review strategies for your inheritance.
Estate Planning Strategies
Protect the transfer of your assets from predators.
This is a common issue raised in Estate Planning discussions and relates to the flow of an inheritance to bloodline beneficiaries where beneficiaries have been divorced.
Concerns to be addressed are:
- How can John & Jill ensure that part of their estate will be used to help educate Greg’s children?
- What would happen if Greg dies before they do?
- In that case who would receive their estate proceeds?
- What happens if Greg and his new wife eventually do have children of their own?
- Greg’s Will has not been changed since he remarried despite many reminders. What impact does this have on John & Jill’s wishes?
Estate planning is more involved than purely writing up a will. Real estate assets, share investments and superannuation pensions are integral considerations for a coordinated and tax effective transfer of wealth to the next generations.
Contact us for a confidential review of your estate planning strategies.