Estate Planning

Our value to you is

  • strong relationships with lawyers facilitate best outcomes;
  • ensure tax effectiveness of your estate planning;
  • experienced in small/family businesses and effects of owner/partner death

Estate Planning

Our aim in estate planning is to ensure that your wishes upon death are carried out efficiently and without unnecessary cost.

Dealing with areas of law relating to succession, taxation and social security are difficult at the best of times let alone after the death of a loved one or partner (business or otherwise).

A Will allows a person to direct how their assets are to be dealt with after their death. However, it only covers those assets that you actually own. Often people will control assets such as company assets, trust assets and even their superannuation fund, but they do not own those assets.

Should you not have a solicitor you regularly deal with or would prefer we arranged a legal professional for you, we would be happy to introduce you to one of a number of highly skilled legal professional partners.

Wills

Everyone, even with modest assets, should have a current valid Will. Keeping your Will up to date when circumstances change can be one of the most important aspects of an estate plan.

Various state laws can be exercised if you do not have a valid Will which could mean that, ultimately, your wishes are not carried out as you had intended. There could also be unnecessary costs, delays and financial hardships to those surviving loved ones.

The impact of divorce or marriage should also be considered as divorce does not automatically nullify your Will. However, marriage or remarriage automatically may invalidate any existing Will. Your Morgan Wealth Management advisor can ensure that these and other important aspects are not overlooked.

Powers of Attorney

Morgan Wealth can assist you with organising key types of Powers of Attorney;

  • Power of Attorney;
  • Enduring Power of Attorney;
  • Enduring Power of Guardianship; and
  • Enduring Medical Power of Attorney

Guardianship

Using your Will to appoint a guardian, including leaving documented instructions for your children’s carers, can provide peace of mind that your children and the values you hold dear will be passed on to them.  Particularly important for infant or minor children, the issue of guardianship and who will care for your dependent children, in the event of your death should not be overlooked. It can cover issues such as how you want them to be educated and other issues important to you.

Superannuation and your will

Superannuation allows a variation on the rules relating to trust arrangements and as such is not considered a personal asset. Control and ownership of the assets held within superannuation therefore reside in the hands of the trustee/s.

Should you die, the funds trustee/s are faced with two types of nominations:

  • Non-binding death benefit nominations; where the trustee ultimately decides who should receive a death benefit; and
  • Binding death benefit nominations; where the member directs the trustee on where they would like the benefit to be paid. Under this form of nomination the trustee is bound by the nomination provided.

The type of superannuation fund that you have is also a matter for consideration. Self-Managed Superannuation Funds often have different planning needs from public offer funds and industry funds. A failure to consider each fund’s intricacies could lead to significant delays, hassles, unintended tax consequences or even with benefits being paid to unintended beneficiaries.

Testamentary trusts

Testamentary Trusts are used strategically as a useful vehicle in estate planning and provide a means to facilitate flexibility.

A trust is an obligation where a person/entity (trustee) is legally bound to hold and deal with property for the benefit of others, the beneficiaries.

A testamentary trust is created by a Will and is activated as a result of death. With such a trust, the trustee can be given specific instructions on how the assets are to be distributed or the trustee can be given discretion.

Some advantages of Testamentary Trusts:

  • They allow income and capital to be divided between beneficiaries, at the time and in amounts as determined by the trustee or deceased. This may make it possible to reduce tax;
  • A trustee can direct distributions away from particular beneficiaries;
  • The assets are protected if the beneficiary becomes bankrupt;
  • The assets are protected from being split if the beneficiaries divorce;
  • The assets can be guarded from spendthrift children;
  • Trusts can be utilised to provide financial support for handicapped children; and
  • Trusts can protect assets from being included in the calculation of social security benefits.

Discretionary family trusts

A discretionary family trust has much of the same benefits as a testamentary trust but can be established while you are alive. The establishment of a discretionary family trust can assist in the tax-efficient transfer of wealth from one generation to the next as well as provide flexibility in dealing with the present.

Important things to consider are who has control of the trust on your death and does your trust deed deal with this issue in the most efficient manner for those surviving beneficiaries?

It may mean that a review of your will is needed to ensure that it remains relevant to your current circumstances.

If you do not have a discretionary family trust, have you considered the tax benefits and flexibility this structure provides now and in the event of death or disablement?

Business succession

Often a large proportion of an individual’s or family’s wealth may be concentrated within a small business. Have you considered the most efficient way to transfer this wealth from one generation to the next in a manner that will benefit and support your retirement and reduce disruption in the business?

Many small business owners are often unaware that there can be significant tax savings for small businesses which are structured properly. Current tax laws afford significant tax concessions to those business owners who can maximise these benefits.

Have you considered who would be able to buy the business from you or your family, or operate the business in your absence or death? Is there sufficient life insurance or business insurance in place to deal with these matters?

Is there a plan in place to ensure the business continues in a profitable manner and/or allows non-family business partners to purchase your share of the business. Have you considered how they would be able to fund this acquisition?

A Morgan Wealth Management advisor can ensure that these issues are effectively planned for, ensuring your years of hard work realise the maximum benefits.