Estate Planning - Ivy Wealth

Estate Planning

The term ‘estate planning’ for many people is unknown territory and perceived as simply the writing of a Will. The reality is that anyone who is earning an income or has any assets has a need for some level of estate planning advice.

Even at a young age you may have specific wishes for the way you want your assets divided if something unexpected happens. If children enter the picture, your needs may change and your final wishes may need more sophisticated estate planning.

As your assets grow in later life, so too may your family have grown. Your needs can become more complex and need more careful attention and planning is required.

The legal and financial issues involved in making things work the way you want can become very complex. Our expert advice when it comes to planning the right structures to manage your estate can be invaluable in maintaining family harmony, reducing tax liabilities and making sure your wishes are carried out the way you really want them to be.

A Will helps you express your wishes so that your loved ones avoid uncertainty and help avoid legal complications when you die. It is the document which captures your wishes on what will happen to your estate, although it is an essential document it is not always a definitive way to manage what you want done with your estate.

Without a Will, you leave yourself open to government discretion on how your assets are distributed and how your children are looked after if they are under 18. While the family’s best interests may be considered, the actual outcomes could be very different to what you would personally choose. The lack of a Will can cause delays in settling your estate with assets tied up when  your family may need them most. 

Your superannuation and life insurance can be two of the largest assets in your estate, but their distribution upon death is not necessarily covered by your will.

If you own a life insurance policy, proceeds can go into your estate or be apportioned to nominated beneficiaries, depending on how it has been set up. Superannuation death benefits can only be paid to your estate or to ‘dependents’ and in many cases, members’ death benefit nominations are not binding on a super fund trustee. Careful management of how you set up your nominations can avoid trustee discretion to distribute funds.

If you have a Self-Managed Superannuation Fund, there are additional considerations to make. 

Depending on your situation, you may be able to use legal instruments, such as testamentary trusts, discretionary trusts or even a self-managed super fund to manage distribution and control of assets more effectively, rather than simply distributing directly through a Will. This is particularly useful if you want to ensure that younger family members are restricted in their use of your assets until they are old enough to deal with them responsibly. They can also be used to prevent the complications that can arise from blended families or estranged family members.

Understanding tax implications and structuring affairs to manage tax can be an important part of estate planning. An asset you leave for one child may be subject to tax, whereas another asset left for another child may be exempt, unintentionally resulting in different final amounts to each child. Beneficiaries who are on government assistance may find benefits are affected by inheritance payments.

There can also be tax implications for your superannuation benefits and associated insurance benefits held in your super, depending on how benefits are paid and whether beneficiaries are dependents or non-dependents. 

All these issues are much better when considered at the planning stage rather than waiting for them to become a problem when it is too late.

If you would like to talk about a personalised plan for you, give us a call on 6245 1777.


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The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.

DWM (TAS) Pty Ltd trading as Ivy Wealth ABN 30 153 421 179. Corporate Authorised Representative of Sentry Advice Pty Ltd AFSL 227748.
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