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Estate Planning Strategies to Preserve Your Family’s Wealth

October 11, 2022 | Estate Planning

When it comes to estate planning, there are several strategies that families can use to preserve their wealth. Below are some of the most common ones you can also consider for your family. Before proceeding, it is always best to discuss your circumstances and preferred strategy with your financial adviser and solicitor.

1. Consider Aged Care Fees

It is essential to be aware of the fees associated with Aged Care and any potential Centrelink issues that may arise. Creating a strategy to fund future care can help ensure that family assets are structured to pay for your own Aged Care costs.

Check your portfolio for whether a suitable amount of investments can be easily converted to cash, if needed, to pay for things like housing, food, and other extras.

2. Get Financial Advice

When it comes to financial matters, it’s always a good idea to speak to a professional who can give you tailored advice. This is especially true if you’re not sure where to start or what your next steps should be. A financial adviser can help you assess your current situation and set realistic goals for the future. They can also provide guidance on investment strategies and how to best use your money to achieve your financial goals.

They will also help you create a comprehensive financial plan that takes into account your unique circumstances and goals. They will provide you with the tools and guidance you need to make sound financial decisions and choices moving forward.

3. Seek Ongoing Support

It is vital to keep your Estate Plan up to date so that your family is taken care of in the way that you want. Without any updates, there may be problems down the line as the original Estate Plan may no longer be relevant or accurate. It is, therefore, important to regularly review your Estate Plan and make changes where necessary.

It’s also important to keep your solicitor, accountant and adviser up-to-date with any family updates, no matter how big or small. This will help protect your family assets and give you peace of mind.

4. Start with a Structure Review

A review of the legal entities that own your assets can save you money by minimising the passing of family assets to the next generation. Different names/entities can hold assets based on past purchases, inheritances, or marital splits, so it’s essential to understand how each one works. By understanding the structure of asset ownership, you can make informed decisions about how to best manage your finances.

5. Super Is Not Part of Your Estate

Superannuation is an important part of your overall wealth and should be considered when estate planning. A review of your super can ensure that your super is structured in the most tax-effective way and that your beneficiaries are correctly nominated.

A super fund member can have their death benefit paid to their financial dependants or their legal personal representative. A death benefit dependant is defined differently under superannuation and taxation law. The death benefit will be paid out tax-free if they choose their financial dependents. If you pay a lump sum death benefit to a non-dependant, you will need to calculate the tax-free and taxable components for each benefit paid. If they choose their legal personal representative, the death benefit will be included in their estate and taxed accordingly.

6. BONUS TIP (for Business Owners) – Plan Your Business Exit

You will need to start planning for your eventual retirement well in advance so that you can ensure a comfortable future for yourself. This includes putting processes in place to help you exit your business smoothly and efficiently without losing too much money.

As a business owner, it’s important to plan for your retirement and ensure that your assets are protected. You should also consider who will take over your business when you retire, how they will fund future ownership, and how to address legal and tax issues. By doing this, you can make sure you’re compensated for all your hard work and that your business will continue to thrive after you’re gone.

Plan Your Estate Now to Protect Your Family

There are many estate planning strategies that can be used to preserve family wealth. Some of these strategies include considering aged care fees, getting financial advice, and planning your business exit. Each of these strategies has its own advantages and disadvantages, so it is essential to consult with a qualified estate planning solicitor to determine which strategy is right for your family.

If you are looking for a professional Financial Adviser experienced in estate planning, look no further than our expertise here at Coastal Advice Port Macquarie. We guide our clients to protect their estates and ensure loved ones are provided for when they are no longer here. Call us or book online to secure your complimentary consultation today!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

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