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:
- By streaming income and capital gains tax from estate assets to relatives who are low taxpayers at the time of your death;
- 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*.
- 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:
- 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.
- 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.
- Exclude persons who would otherwise be persons eligible to benefit under your will.
- No capital gains tax (cgt) on an estate asset left to a foreign beneficiary nominated in the will:
- 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
- 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.