A standard Will is not appropriate as it leaves your estate to a beneficiary, outright – in their personal name. As your estate rests with them personally it means they are exposed to personal tax rates, creditors and the inheritance can form part of a family law property pool!

If it is important to you that you maximise the dollar value of the inheritance to the beneficiaries of your estate then it is always better to get in touch with an estate lawyer Melbourne for a detailed estate plan! What do we mean by an estate plan? An estate plan includes your will as well as any other directions on how you want your assets distributed after your death. It includes documents that govern how you will be cared for, medically and financially, if you become unable to make your own decisions in the future.

Limitations of a standard Will.

  • It may not be tax effective;
  • It does not protect an inheritance from creditors;
  • It does not protect a beneficiary who has a disability;
  • It does not protect a beneficiary in the event of a marriage breakdown;
  • It may not preserve a pension entitlement; and
  • It does not provide for future generations.

It is for the above reasons that you may need to have a detailed estate plan, which leaves your beneficiaries share or inheritance to a testamentary trust. Our estate lawyers Melbourne will ensure that your testamentary trust cannot be contested by anyone.  Many people are not aware that a trust is a legal device used to separate the OWNERSHIP of an asset from the CONTROL of that asset.

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What is A Testamentary Trust

A Testamentary Trust is a Trust created by a Will that only comes into existence when the Will-maker dies. A Will can create more than one Testamentary Trust (e.g. a separate Testamentary Trust for each individual child) and the terms of each Testamentary Trust can vary. For example, if you have a beneficiary who is a gambler, the trust can dictate terms as to the use of the inheritance.

Who Controls the Assets held in a Testamentary Trust?

The person named in the Will as the Trustee controls the Assets of the Trust.

Trustee’s control can be either:

Discretionary – Trustee decides who among possible beneficiaries receives Income and Capital, and when distributions are made; or
Fixed – the trust stipulates to whom the Trustee must distribute Income and Capital to.
The control of the trust will be discussed and determined in accordance to your personal situation and that of your intended beneficiaries.

Do You Require An Estate Lawyer Melbourne?

 

Call us Now : 03 9571 7444

Benefits of Testamentary Trusts & Diagram of Testementary Trust

  1. They are Tax Effective;
    income distributed to children taxed at normal tax rates, not penalty tax rates as is so with Trusts which are not created in a Will;
    Capital Gains Tax may be deferred; and
    50% Capital Gains Tax concession applied.
  2. Protects inheritance from creditors;
  3. They are as flexible or inflexible as the Will-maker wants;
  4. Protects a spendthrift beneficiary from himself or herself;
  5. Protects a beneficiary with a disability;
  6. Can protect a beneficiary in the event of a marriage breakdown;
  7. May assist in preservation of a pension entitlement; and
  8. Provides for future generations.

At Argent Law, our estate lawyers Melbourne understand the attention to detail  required to create a testamentary trust. We make sure that your estate is protected and does not end up in the worng hands.

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Other Important Estate Planning Issues

Jointly held assets;
Assets held as tenants in common;
Assets held in Business Trusts, Family Trusts and Companies;
Superannuation;
Personal insurances; and
Business ownership.

What is Argent Law’s Estate Planning Process?

This is a specialist area and as Argent Law is affiliated with Argent Accounting, Argent Financial Solutions and Wealth Arena, we can assist you with all of these relevant considerations under the one roof!

Estate planning is a process whereby your entire structure and affairs are looked into, thus the need to (at times) have the involvement of a Chartered Accountant, a Financial Planner and a Finance Broker.

As all four experts can collaborate together, the process is faster and more thorough. However, should you wish to utilise your own Accountant or Financial Planner that is not a worry!

Protect Your Legacy-Contact Our Estate Lawyers Melbourne Today!

 

At your initial consultation, Argent Law will:

Obtain instructions from you regarding your financial affairs and your wishes;
Discuss your beneficiaries and their individual circumstances and any concerns you have;
Provide advice with respects to the relevant law that affects your Estate; and
Discuss items that you need to consider such as appropriate trustees and Executors.

To get in in touch with Argent Law, call us today on (03) 9571 7444.

argent law estate lawyers melbourne

Administration of a Deceased Estate

Administration of a Deceased Estate can be a complicated and time-consuming process. Let our lawyers assist you through the process.
→ Administration of a Deceased Estate

Basic Wills

A basic will is essential for avoiding disputes between family members over assets and your estate. Talk to our lawyers for legal advice and assistance.

→ Basic Wills

Powers of Attorney

If you do not have any Powers of Attorney in place and you lose capacity, someone needs to make an application to VCAT for guardianship. This is a drawn out process.

→ Power of Attorney(s)

Family Law

If you have been separated for 12 months you are probably ready to file for divorce. See here for requirements and process.

→ Family Law

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