PART B – Arrangements to be made if you pass away or die (or for this eventuality…)
In addition to the above ; “The Part B Agenda” that may need thought and planning……………
1. Do you have a Will ? Do you know where it is ? Is it up to date ?
2. Will your Will protect your Spouse/Partner, Children/Relatives or Beneficiaries from Family
law/de facto type legal claims or other types of legal claims or court action ?
3. Will your Will help your Spouse, Partner, Children or beneficiaries lawfully reduce tax liabilities
?
4. Does your Will adequately protect your Spouse,Partner,children or beneficiaries if they are or
become incapacitated, ill ,disabled or simply from becoming spendthrifts ?
5. Will your Will properly deal with property in other structures like Trusts ,Companies ,
Superannuation ,Pensions / “401 K” funds outside your home country……………….?
6. Is your Will fair and equitable and will it reduce the chance of disputes and care for relatives
adequately ?
7. Do you have adequate Life Insurances/Life cover ?
Strategies (in addition to the above) to cover the above might include :
(1) Wills with arrangements for Trusts or other structures after death ,(2) Deeds included
within existing Trust Deeds to fix the allocation of property/income and succession (3)
Regular reviewed Binding death Benefits for Superannuation (4) Buy/Sell
Agreements/Business Succession Agreements – a “Will for your business/Company”
Why your Will should contain provision for
Testamentary Trusts (Trusts created after death) or *other types of legal Structures after
Death..
This is only a short summary of the advantages and benefits to your relatives /beneficiaries of
creating Optional Trusts in your Will. (A Will Trust is often also referred to as a “Testamentary” Trust)
This summary should not be read, understood or relied on complete advice with respect to Trust, Tax,
the law as it applies to Wills or the law generally. Detailed professional legal, accounting and tax
advice is required for each individual set of circumstances.
If you have any questions or queries please make contact with us for a fuller explanation.
Why your Will should contain provision for (Optional) Testamentary Trusts ?
What is a Testamentary Trust?
A testamentary trust is a trust established by a Will after death . Optional, discretionary, testamentary
trusts are often recommended for use in Wills as they can offer taxation and asset/property protection
advantages when compared to a ‘standard’ simple Will where gifts are made to people directly. Such
Trusts can be made compulsory or more restrictive also depending on circumstances……
A testamentary trust can live for up to 80 years from your death (or longer if commenced/administered
in South Australia) it can provide flexibility, asset protection and taxation advantages for many
generations of your relatives ,family and beneficiaries.
How might beneficiaries potentially benefit from a Testamentary Trust?
Your beneficiaries may potentially have the following benefits/advantages:
• Large income tax savings for beneficiaries/Surviving Spouses/Families in many overseas jurisdictions
• Possible large capital gains tax (C.G.T.) savings for beneficiaries
A well written testamentary trust can also provide the chance for beneficiaries to minimize
Capital Gains Tax which can arise from the sale of your assets in numerous countries.
Generally in most Countries Capital Gains Tax is not
triggered when an asset belonging to you passes via your Will to your executor or the trustee
of a testamentary trust.
As with the income of the trust, the trustee can choose which of the beneficiaries of the
testamentary trust could or should take the capital gain. By choosing to distribute the capital
gain to a beneficiary on a low or nil income, the capital gains tax liability (and *other tax liabilities)can be significantly
reduced.
Keeping the property of an estate within a trust offers the beneficiaries an opportunity to put
off or defer the sale of property (and therefore capital gains tax) until later on when more
numerous beneficiaries/relatives come into existence. Tax payments put off or delayed is tax
saved.
• Beneficiary’s inheritance can be protected from bankruptcy and/insolvency
A testamentary trust can provide protection to your beneficiaries from the repercussions of
bankruptcy in many countries
• Beneficiary’s inheritance can be protected from family law claims in many countries
A testamentary trust may also provide some protection for a beneficiary who is experiencing
family law or (now) De Facto difficulties/potential/actual claims in Family/other Courts
If a beneficiary’s entitlement is held in a discretionary after death trust as set out in a Will, the
beneficiary ma be able to effectively isolate estate gifts/bequests from personal assets. This
may protect his/her inheritance from family/de facto type law property proceedings.
• An inheritance can be kept in the family ;keep Wealth within the Family
The above possible strategies enable you to keep out Predators and Creditors ….
Asset + Property Protection Strategies during your Life just as Important………………………..
We can suggest a number of options or action plans and we will quote you fixed lump sum or range of fees from which we will not deviate.(as long as there are no undisclosed facts or radically changed domestic or other business situations).
If you want to talk to Lawyers/Solicitors with required knowledge in preparing modern Wills containing
testamentary trusts and other flexible option(s), and you wish to update or amend your Will.
