Are you financially fit?

By Damien Moffrey

We recently ran a series of seminars on superannuation and estate planning, and it has become apparent that many people don’t consider their own mortality, tax and protection of their assets. Nor do they consider carefully enough their estate planning and the consequences that their passing could have on a life time of hard work.

You can spend $2000 on insuring your vehicle or home but people shy away from spending a few thousand dollars protecting their family wealth including assets that they have spent a lifetime accumulating. Estate planning is complex and a few of the key considerations are noted below (this is by no means all inclusive but should to be used as a prompt for discussion with your accountants and lawyers).

Allowing for preparation of your Will;
Enduring powers of attorney;
Thinking of advanced medical directives;
Looking at where you want your superannuation to go and the tax consequences of your decisions;
Contemplation of self managed superannuation funds vs public offer superannuation funds;
Who should have your assets (or more likely who you want to ensure doesn’t get them);
Whether there are insurances and debts to be dealt with in your estate;
Having a clear understanding of what you actually own is important, many people will hold assets in companies or trusts. These structures need to be analysed and understood;
Deliberations regarding whether any child may have a bankruptcy, drug, spouse or criminal problem that may impact your estate if distributed to them;
Allowing for a blended family with children who may not get on, are step-children, dependant or estranged – considering and implementing a strategy;
Consideration of your assets being dealt with in “Estates” or in “Non-Estates”; and
Think who controls assets and directs payments on death.

Reflecting on who will administer your wealth and family assets if you pass away without giving consideration to the above items is futile. Much wealth can be eroded if dealt with in high taxed environments and effective and efficient tax planning must also be combined with estate planning. Administration costs can eat into your asset base if not controlled.

It has never been more important to consider your estate planning. Over our long period of service to clients on the Gold Coast we have built up a network of experts in this field so we can point you in the right direction when deciding and documenting your plans.

Please do not hesitate to call Damien Moffrey to discuss your estate planning needs.