Chances are you have done the right thing and created a will, but did you consider the tax implications your beneficiaries may face upon distribution of your estate?

At WHK we have a number of accountants who are estate planning specialists who work closely with your solicitor, financial planners and often Risk Insurance specialists to ensure that the right assets are transferred to the right people at the right time with the best possible tax outcome.

WHK estate planning specialist Melanie Serone says - “Often clients don’t consider taxation implications when planning their estate. Many clients make a standard will which does not address all of their objectives and often results in devastating consequences for the ones they leave behind.”

At WHK we speak to our clients about having a Comprehensive Will to deal with the growing array of assets you control rather than own, such as superannuation, family trusts, life insurance, joint bank accounts and property held as joint tenants, which are not covered in a standard will document.

What about Testamentary Trusts?

A Comprehensive Will has provisions for the use of a Testamentary Trust or Trusts. Testamentary Trusts are a great planning tool and can often cater for unforeseen events that may be impacting your beneficiaries at the time of your death. Your beneficiaries may choose to take their inheritance in a Testamentary Trust rather than individually. Some of the reasons why they would choose to use a Testamentary Trust are:

Bankruptcy – Estate assets held in a trust may not be available to a trustee in bankruptcy, therefore ensuring your hard-earned assets are not forfeited.

Tax & CGT – The primary beneficiary can choose to distribute income or capital to children and take advantage of the lower marginal tax rates that apply to income paid to minors from Testamentary Trusts – a very useful tool where the primary beneficiary is earning a large income.

Control by Blood Relatives – You can restrict inheritance to blood relatives only – making it more difficult for in-laws to have access, especially in the event of marriage breakdown.

We also consider the use of Superannuation Death Benefits Proceeds trusts, Special Care trusts, Lifetime Benefits trusts, Capital Preserved trusts and Estate Equalisation issues, depending upon your unique situation.

But what if I have already made a will? What should I do now?

If you already have a will in place and you are concerned about its effectiveness you should bring it in for your accountant to review to identify any flaws.

If you have any questions or would like to speak to one of our specialists please contact your local WHK office.