Inheritances & Estates

Protection of your Inheritance | Estate Planning strategies

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.

Case Study

Double Dipping

Jenny and Bruce have just received an inheritance of $80,000 in shares and $120,000 in cash from Jenny’s father’s deceased estate.

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.

Case Study

John & Jill’s son Greg has remarried, he has no children with his new wife and Greg’s two young children primarily reside with his former wife.

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.