Wills and Testament

Don’t have your estate pay unnecessary tax – after you die.

In your will, give your beneficiaries the option of taking their inheritance directly or via a testamentary discretionary trust. This could save them hundreds of thousands of dollars in tax*

How your will can save tax for your estate and beneficiaries:

1. By streaming income and capital gains tax from estate assets to relatives who are low taxpayers at the time of your death;
2. E.g. a house left to a specific beneficiary/s;
   Income can be streamed to the children of the beneficiary under 18 years, to take advantage of their preferential tax rates. Possible to save at least 50.0% $350,000.00) in tax for your estate over 10 years and, therefore, your beneficiaries*.
3. Income streaming can only occur by providing a model testamentary discretionary trust deed with your will, for use if needed, on your death.
   – Can save your estate hundreds of thousands of dollars in tax

Other benefits of a ‘testamentary trust’ will:

1. Established to e.g. Provide for education and general life advancement of beneficiaries under 18 years:
   Trust then funds these expenditures with lower-taxed dollars than e.g. If parent did so.
2. Protecting assets from bankruptcy and family law claims:
   Beneficiaries assets have a much greater chance of not being attacked by parties adverse to the beneficiaries.
3. Exclude persons who would otherwise be persons eligible to benefit under your will.
4. No capital gains tax (cgt) on an estate asset left to a foreign beneficiary nominated in the will:
5. Preservation of the centrelink entitlements of a beneficiary:
   Beneficiary will have no direct control over the assets of the trust.
   o Intellectual disability of beneficiary
   o Substance abuse problem of beneficiary
   o Severe disability of beneficiary
6. Flexibility to have beneficiaries take their share directly rather than being held in the testamentary trust:
   o For example- beneficiary can sell the asset to pay off their own mortgage

Call Jim Wilson, Principal, Wilson Haynes – solicitors – conveyancers 07-55363055 x 4

*ask us to show you an example, so you can determine its relevance to you.