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Trusts are not just for the ultra-wealthy

One of the bigger misconceptions we deal with is the misplaced belief that trusts are only for the high net worth people or the ultra-wealthy.

In our experience, nothing could be further from the truth….

One might think that estate planning is simple – write a Will and leave everything to your Partner and or the children. If only it was as simple as that. Currently Australia is in the midst of the greatest transfer of wealth ever seen as $3.5 trillion in wealth is passed down to the next generation. While a lot of this wealth is in super, there is a significant amount in property and shares. The big question is how to make a smooth transition without losing monies through unwanted tax and legal requirements?

Most clients we speak to are concerned about how they can leave monies for their children and ensure that its stays in the bloodline. They are also concerned about how they can protect the wealth they pass down from either poor business decisions by their children later in life or from the loss associated with marital breakdown.

The answer to this is more often than not, through the establishment of a testamentary trust which allows for the inheritance to be passed to bloodline descendants, while also providing added protections from creditors and marital breakdown. Additionally, there are associated tax benefits to putting these structures in place. The key aspect is that you need to have “turned your mind” to making provision for the creation of these structures within your Will while you are alive.

These structures are very difficult to put in place after the event.

If some of the questions raised here resonate with you, feel free to contact us for a discussion on planning for your Estate.

Speak to one of our financial adviser