Our Services - ASC Financial Services Mackay

Home

About Us

Our Services

FAQ

Our Services

Estate Planning

Some people think of Estate Planning as simply preparing a Will. In reality, it’s much more than just a Will – Estate Planning is designed to address the spectrum of issues associated with protecting and distributing the wealth you have accumulated over your lifetime.

Estate planning is essential to provide your family with security and peace of mind, which is why it must form part of your overall financial plan. Everyone with assets - whether you have a house or business, or even just an investment like superannuation - needs to consider estate planning.

It is necessary to consider who you would like to receive all or part of your estate and who will benefit if your choice of beneficiary should predecease you. This is particularly important in terms of children and grandchildren.

Estate planning means arranging your assets so the people you want to take care of receive the financial support they need when it's most needed, in the most tax-effective method possible. In short, proper estate planning ensures that the right funds end up in the right hands at the right time.

Wills

One of the most important estate planning documents is the Will. Despite a Will being a simple document to prepare, many people die without having made a Will, or die leaving a Will that is out of date and which does not accurately reflect their current circumstances. A will determines, among other things:

	who will be in charge of the administration of the estate; and
	how the assets of the estate are to be distributed after death.

Powers of Attorney

A Power of Attorney is a formal deed whereby one empowers another to represent him/her for certain purposes. The person granting the power of attorney is called the donor or principal. The person receiving the power of attorney is termed the donee or attorney.

There are three types of Powers of Attorney available:

	a) General Power of Attorney
	b) Enduring Power of Attorney or
	c) Enduring Power of Attorney (Medical)

Testamentary Trusts

Testamentary Trusts are relatively simple to establish. The term ''Testamentary Trust'' is used to describe a number of forms of trusts that result from the death of a Will-maker.

For example:

	beneficiary testamentary trust, otherwise referred to as the discretionary will trust;
	estate testamentary trust;
	superannuation proceeds trust;
	restricted trust; and
	discretionary life interest.

Once established they can hold assets from the estate and apportion income from these assets to your list of beneficiaries in the most tax effective manner. Testamentary trusts offer improved protection of the estate and certainty of intention which means beneficiaries receive the benefits of gifts as bequeathed. There are a variety of ways that a trust can be established and it is important that if you do wish to establish a trust you seek qualified advice.

Estate Planning in Super

Binding Death Nominations

Many death benefit nominations made by members of superannuation are not binding on the superannuation fund trustee. This means that the trustee of the super fund may exercise a discretionary power to determine how the benefit is paid and to whom.

Nominations may also be binding subject to the rules of the trust deed. These nominations are binding on the trustee for a period of three years, after which time they become invalid. It is important to note that death benefits can only be paid to the estate of the member or to a dependent under the Superannuation Industry (Supervision) (SIS) legislation.

Child Allocated Pensions

A Child Allocated Pension is a tax effective strategy to pass on assets and provide income to minor children in the event of a parent's death. An account is established using the deceased parent’s super entitlement, and the account balance is used to pay an income stream. The pension payments can be indexed for inflation and in many cases the parent can choose the level of income their children will receive (within government-set minimum and maximum limits) and the age at which children are eligible to receive a lump sum.

Implications for SMSFs

As trustees and members, you effectively have ultimate control in the distribution of death benefits within your self managed super fund. It is important you prepare a strategy for the payment of benefits to members’ chosen beneficiaries and incorporate the facilities to implement this strategy in your trust deed. It will be necessary to make preparations for the wind-up of the fund in the event of the deaths of all trustees and members.

Complaint Resolution