We are fortunate that we don’t have tax on death in Australia but there may be tax implications to your estate or the individuals that you choose to leave your estate to.
Each different type of investment structure will have a different way it is dealt with when it forms part of your estate. Cash is easy, no tax or stamp duty, but the administration of an estate becomes a little more complicated when there is property, shares/managed funds, superannuation or pensions. As an example, how is your property owned – joint tenants or tenant in common? What about superannuation, there are no tax implications when paid to a dependent, but who is a dependent? What happens if this superannuation fund is paying a pension, can the pension still continue?
These are just some of the questions we need to consider and why we believe that estate planning is somewhat more than just having a valid will. Strategic estate planning will consider the most effective means of transferring or preserving assets for the people you care for so they don’t share it with the ATO or the Office of State Revenue.
We work closely with our legal partners to ensure that our clients’ estate planning needs are fully addressed and kept up-to-date as legislation and family needs change.