1. What is Estate Planning?

Good question! We won't bore you with the 200 word definition. In simple terms - it's a way of ensuring that a person's estate is passed onto their beneficiaries in the most financially efficient and tax effective way possible.

2. How will Estate Planning benefit me?

The answer to this question really depends on your financial situation.

For most people who have money in superannuation and a reasonable level of assets, it is certainly worth considering. We are able to explain to you how you can maximise the amount of your assets that are passed on after your death. And can provide you with the costs and benefits of a particular estate plan.

Examples of how estate planning could be useful are:

• where you want to pass on a family business;
• where you have a superannuation payout;
• where you want to make a gift to a charity;
• where you've got capital losses;
• where you have property which may be caught by capital gains tax, i.e. it was purchased before 19 September 1985;
• where you have life insurance;
• where there are family debts; and
• where you want flexibility in distributing your assets, for example, there are more kids on the horizon or for tax purposes

3. The benefits of a Trust

Leaving assets directly to another person is only one way of distributing assets through a will. Another, increasingly popular strategy is using a trust. Trusts are prepared by lawyers and accountants for many reasons - probably the most common is a family trust which allows a person to transfer assets out of their name while still keeping control of the assets.

One of options often considered in estate planning is to include a trust as part of the will - this is called a testamentary trust. The advantages include:

• maintaining social security entitlements;
• ensuring that assets pass to children even if a surviving husband/wife remarries;
• capital gains tax and income tax advantages;
• providing for children with an intellectual disability or mental illness; and
• Protecting assets where a beneficiary becomes bankrupt or divorced.

There are few general rules about whether a testamentary trust will be best for you. It will depend on your individual circumstances and how you want to leave your assets. You will need expert advice about this.