estate planning presentation
DESCRIPTION
ESTATE PLANNING PRESENTATION AUSTRALIA Tel 0409813622 / 02 92813230/95195911 QLD www.gblegalfnq.comTRANSCRIPT
Estate Planning Presentation
www.trustdeedregister.comwww.gblegalfnq.com
www.gblegalservices.comwww.assetandpropertyprotection.com.au
Email :[email protected]
“Before and After…” Alex Tees , Tel 07 4033 7652 02 92813230/
0409813622Solicitor, Estate Planning Adviser
Email [email protected] skype alextees
Important disclaimer
• No person should rely on any part of the contents of this presentation without first obtaining advice from a qualified professional person. This presentation is given on the terms and understanding that the author is not responsible for the results of any actions taken on the basis of information in this presentation, nor for any error in or omission from this presentation. The author hereby expressly disclaims all and any liability and responsibility to any person, whether a purchaser, recipient or reader of this presentation or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this presentation.
Basics – No Will ? – Consequences / Solutions , Avoid Problems and more angst at a time of Grieving...........................• No Will/Intestacy :means you dont choose who
recieves your property/assets ;• - The Succession Act Formula will apply• Intestacy = 3 x amount of delay + Costs!• Spouses/Children suddenly have no money• Super’ Pay outs delayed• Solutions ; see a Lawyer get a Temporary
Will Form Done ! Incapacity – Powers of Attorney (Wills only operate after death !) (Call us 24hrs!?)
“MODERN SUCCESSION & ESTATE PLANNING “
• Due to increasing complexity in family relationships and business/investment structuring, along with complicated tax and legal regimes - modern estate planning, done properly, must encompass issues such as :– Efficient intergenerational transfer of wealth with
harmony– Asset protection (Keeping out “Predators/Creditors”
& Keeping the Wealth in the Family )– Tax (at both State and Federal level)– Superannuation (Formation + Review of Deeds)– Trusts, (Formation + Review of Deeds) – safe storage (
www.trustdeedregister.com (.com.au) – registration ?– Investments/insurance structuring– Resolution of disputes and other issues through the use
of an “Independent Referree” – Dispute Resolution
WHAT Lawyers should DO in co-operation with Accountants and Financial PlannersProvision of strategies and advice in
collaboration with other professionals ( Accountants/Financial Planners) to deliver the optimum outcome(s) for client (s): Modern Estate Planning Strategies
( Before and after death ) Testamentary Trusts ( Trusts created after death) Family Trusts Self-managed superannuation funds (SMSF) Business succession planning.(a “will” for a
Business )
Estate Planning - HOW a Lawyer should and can OPERATE
Timeframes agreed with client and referrer at each stage to ensure efficient completion and accountability
Fixed Fees or a fixed range of fees & the First meeting with client(s) is purely a scoping exercise & obligation free ( often in Accountants/Financial Planners ‘ office )
Collaboration/Reporting to Accountant/Fin’Planner at each stage = Further Fee & protection opportunities..for you
Systematic and efficient delivery ( x 3 Meetings) Technical and client-related queries welcomed from all
Referrers/Client(s) Referral to other Specialist Tax Services
Why is it different ? - the way it is recommended to operate compared to OTHER LAW FIRMS ? High level technical expertise in superannuation , taxation ,
and Trust law – Solicitor(s) should work with and have access to the resources of Accounting advisory firms.(throughout the World)
Specialist Solicitors who understand and appreciate the Financial planning process, work together with Clients’ Financial Planners & Accountants.
Encourage First meetings/other meetings at Financial Planners/Accountants’ office and/or clients home/office.
Fixed price contracts (or Fixed Range) (Approx 75% Tax Deduction)
Comprehensive Estate Planning Portfolio / Folder. Delivery meetings can be Optional Family meetings
to include the children – builds bridges to next generation
A Modern Will – Creative use of Trusts after Death…(as well as * Other structures )• Will Maker/Testator makes a Will to flexibly
provide ;• Optional Testamentary Trust or other *Structures
created after Death (*Note Tax laws may change !?)
• “Beneficiaries” Persons receiving Money & Property , receive it via a Trust of which they or their Nominated Person become Trustee
• Provides Tax Efficiency and Assett Protection• * If the law changes Provision for Other Structures
such as Partnerships, Joint Ventures and different types of Companies/Corporations may be necessary…..
Example – Optional Trusts After Death
EXECUTOR
(May not be the same Person)
TRUSTEE (S)
TRUST TRUST TRUST
EXECUTOR WILL
The Efficient Will – *Possible use of Trusts after Death………..
Optional Discretionary Testamentary
Trust
!
E
Trustee
Beneficiaries include: ( THOSE RECEIVING GIFTS )· Primary Beneficiary
–Surviving Spouse/Children
· Family Members· Related Entities
Trustee - Primary Beneficiary(Surviving Spouse/Children)
B
Case Study 1 – Wealthy Woman marries a much less Wealthy Gentleman – Who Needs Protection ?
Assets and Possible Family Situation• ( Married or Unmarried)• Possibly have one child• Woman owns a House/Property• Woman a High income earner/ &
Wealthy• Perhaps the Husband will never have
a high income earning capacity
Case Study 1 - ESTATE PLANNING - WISHES & Concerns - Whose ? !!
• Protect the child if both or One Spouse dies
• Ensure Husband does not receive too much “loot” from His Wealthy Wife if she dies first ? ( & Protect the Child as well !)
• Ensure the Husband at least has a Roof over his head and adequate provision while he cares for the child if Wife dies before him…
• Ensure Equity & Sensitivity …………
Case Study 1 -Possible Strategies• A Separate Care for the Spouse Trust for the Husband with
little wealth• A Separate Trust for the Husband with sufficient
Money/Property
• A Separate Trust for the child with another relative of the Wife as Trustee (Husband given right to occupy Family Home for life ,while Child receives all the Wifes’ Estate………)
• Recommend and Ensure the Husband owns Adequate & generous Life Insurance over the Life of his Wife in case she dies first…….
• * If the Partners are willing – Pre Nuptial/Post Nuptial Agreements
( very sensitive issues here !) – Binding Financial Agreements
Case Study 2 – George & Marina
George 55, Marina 54 - both retired
• Children ; Jessica 27 (De Facto), • Sarah , 22 (Married) • Jack 21, (Has a Disability, numerous
Partners)
Case Study 2 – George & Marina• ASSETSHome Joint tenants
Investment Property 1
Joint tenants
Managed funds
SMSF (Self Managed Super’ Fund)
Shares SMSF
Direct property
SMSF
Case Study 2 – George & Marina
• ESTATE PLANNING - Wishes & Concerns
George to Marina and vice versa in the first instance
Then equally to children
Specific protection required for Jack due to disability
Wealth to be retained in the family
Derive some tax efficiency
Case Study 2 – George & Marina
• Possible STRATEGIES
“Estate Assets”
Testamentary Trusts & *other optional Structure (s)
Family Home Sever tenancy
Investment Property 1
Sever tenancy
SMSF (Super Fund)
BDBN (Binding Death Benefit Nomination)
Case Study 2 – George & Marina
• STRATEGIE(S) - WILLS
Concern StrategyProtection of family wealth from spousal and other claims
Testamentary Trusts (TTs) & other Structures with crisis provisions (removal of Trustees, Directors, “Controllers” etc)
Protection for Jack - Control - Conflicts of interest
Protective Trust - ‘Family’ control - Testamentary Protector
Understanding of “non-estate assets” and planning required
Sever joint tenancy (Family Home)Cascading Binding Death Benefit Nominations (Super’)
STRATEGIES – SMSF- Super’Funds
Concerns & Strategy
Maximise superannuation benefits during lifetime, potential inability of survivor to recontribute to super
- Use “Reversionary” pensions Optimising tax with protection(*BDBN = Binding Death Benefit Nomination) - Cascading
*BDBNs - first, reversionary - then, *LPR(* Legal Personal Representative ) Ongoing control of SMSF -Corporate Trustee appropriate ?
Other Possible Strategies – Some “Non Estate Property” – Family Trusts /Super’
Concerns & Strategy (Wills may not Work!)
1) Transition of control of Family Trust -Trust Deed Review
- Deed of Future Dealing / Alter Trust Deed ? ( to take in succession) see
www.trustdeedregister.com
2) “The Business” Release of value in the business – how to pass on to family- “Buy/Sell” Agreements ;- Business Succession Agreement – “A Will for a
Business”
3) Superannuation Nominate LPR as beneficiary, Insurance(s) Nominate LPR as beneficiary
Case Study 3 – Simpler Case
• FAMILY SITUATION• Jack, 53 & Jill 49 - both still working
• 4 children : Mark 23 … single (Jacks child first marriage)
Steve 21 … single, (Jacks child first marriage)
Marina 20 … De Facto (Jills child 1st marriage )
Helena , Age 3 (Jack & Jills child 2nd Marriage)
Case Study 3 Jack & Jill - Assets
Home - Joint tenants
Investment property – Joint Tenant
SMSF (Self Managed Super’ Fund)
Shares SMSF
Jack & Jill (not over the Hill) (3)• Possible ESTATE PLANNING
WISHES & Concerns
Jack to Jill and vice versa in the first instance
Then equally to children
Specific protection required for Helena due to young age
Keep wealth in Family ;Wealth to be retained in the family
Derive some tax efficiency
After Jack & Jill Die …. (3)
Some Strategies :1.Estate Assets Optional Testamentary
Trusts2.Home - Sever Joint tenancy3.Investment Prop - Sever Joint
tenancy4.SMSF (Super Fund) - BDBN (Binding Death Benefit Nomination(s)
General Wills Strategies• STRATEGIES – WILLS (cont)Concern Strategy
Tax efficiency Trust structure - income splitting properties - 102AG concessions for minorsExecutors discretions
Ability for younger beneficiaries to ‘fritter-away’ wealth
Qualifying Age – eg 25“Young Mens disease”(beware “young ladies disease” as well !)
Estate conflicts – Loans
Equalisation provisions
Summary
No two strategies are the same
No two Testamentary Trusts are the same
Strategy must be consistent and coherent across estate and non-estate assets
Must be a collaborative approach –Advisers/Lawyers
Don’t forget Enduring Powers of Attorney /Guardianship
Specialist strategy and intellectual property – no ‘one size fits all’
REGISTER WILLS /Store Register Trust/SMSF Trust Deeds
Thank You ! – Reminder – Optimal Process
Any Questions ? Tel Alex Tees, skype alextees 0409813622 / 02 9281 3230 [email protected] QLD 07 4033 7652 www.gblegalservices.comProcess ; www.assetandpropertyprotection.com.au
1) Get Facts Straight – List Assets/Property2) Compare Notes with Clients’ Accountant,
Financial Planner3) Interview to Confirm instructions4) Explanation/Signing Interview5) Optional Family Meeting ?