• About
    • About Accru
    • The Accru Advantage
    • Testimonials
    • Our People
    • Our Services
    • International Affiliations
    • Corporate Social Responsibility
    • Join the Accru Network
    • Careers
  • Locations
    • Accru Felsers Sydney
    • Accru Melbourne
    • Accru Rawsons Brisbane
    • Accru Perth
    • Accru Harris Orchard Adelaide
    • Accru Hobart
  • News & Tools
    • News
    • Publications
    • Accru Tax Guide 2017/18 App
    • Fact Sheets
    • Online Portfolio Links
    • Useful Business Websites
  • Careers
    • Working with Accru
    • Culture & Values
    • Accru in the Community
    • Current Vacancies
  • Contact Us
Client Login
Accru Logo Skip to content
  • COVID-19
  • Accounting
    • Cloud Accounting
    • Outsourced Accounting
    • CFO Services
    • Corporate Compliance
    • Find an Expert
    • Testimonials
  • Audit
    • External Audit
    • Internal Audits
    • SMSF Audits
    • Due Diligence
    • Data Analytics
    • Payroll Data Analytics
    • Find an Expert
    • Testimonials
  • Business Advisory
    • Business Management
    • M&A and Business Sales
    • Valuations
    • Restructures
    • Succession Planning
    • Business Turnaround
    • Management Consulting
    • Find an Expert
    • Testimonials
  • Taxation
    • Tax Compliance
    • Tax Advisory
    • FBT & Salary Packaging
    • GST & Indirect Tax
    • International Tax
    • Find an Expert
    • Testimonials
  • Wealth Management
    • Wealth Creation
    • Superannuation & Retirement Planning
    • Self Managed Super Funds
    • Estate Planning
    • Find an Expert
    • Testimonials
  • Finance & Insurance
    • Mortgage Broking
    • Commercial Finance
    • Risk Insurance
    • Find an Expert
    • Testimonials
  • International Business
    • Services for German-speaking companies
    • Services for Chinese-speaking companies
    • Starting a business in Australia
    • Expanding overseas
    • Transfer Pricing Australia
    • International Tax
    • Find an Expert
  • Industries
    • Pharmacies
    • Medical Practitioners
    • Not-for-Profit
    • Education
    • Property & Construction
    • Professional Services
    • Manufacturing & Distribution
    • Finance & Investment
    • Retail
    • Digital, Media, Emerging Technologies
Client Login
  • Accru Acccountants | Audit | Tax | Business Advisory
  • Services
  • About
    • About Accru
    • The Accru advantage: quality, innovation and value
    • Testimonials
    • Our People
    • International Affiliations
    • Corporate Social Responsibility
    • Join the Accru Network
    • Careers
  • Locations
    • All Locations
    • Accru Felsers Sydney
    • Accru Melbourne
    • Accru Rawsons Brisbane
    • Accru Perth
    • Accru Harris Orchard Adelaide
    • Accru Hobart
  • News & Tools
    • News
    • Publications
    • Accru Tax Guide 2017/18 App
    • Fact Sheets
    • Online Portfolio Links
    • Useful Business Websites
  • Careers
    • Careers
    • Working with Accru
    • Culture & Values
    • Accru in the Community
    • Current Vacancies
  • Contact Us
Facebook LinkedIn Twitter Youtube
Accru logo

Estate planning – Is your house in order?

By Greg Newbury / March 9, 2015

Most people start with the will itself, however this is only half the story. Although a will is vital, it only comes into force once you die. A Power of Attorney (POA), on the other hand, enables your assets to be dealt with while you are still alive in the event of incapacity or a medical emergency.

shutterstock_162757577-Autumn-leaf1 - Landscape small

Not only are POAs useful for dealing with your family home and other directly held assets, we have also seen them successfully used for family trusts and self managed super funds where the rules surrounding members and trustees are narrow and prescriptive.

There are different types of POAs according to your circumstances and state’s laws. It is important that you consider and prepare these documents while you still have capacity. Your local Accru adviser will be able to assist.

The transfer of wealth from the baby boomer generation to their children will be unprecedented. Gone are the days when mum and dad just had the family home and cash in the bank. It is not uncommon for our clients to have a trust, company and self managed superannuation fund, all of which continue after ones death and need careful consideration to ensure they are effectively transferred in your will.

A constructive estate planning discussion should take into account the following:

  • Asset protection – the protection of your wealth from marriage breakdowns, creditors (your own or that of your beneficiaries) and potential challenges to the estate.
  • Taxation – each structure has its own unique tax implications. The family home, for example, can be sold capital gains tax free, while superannuation, retained profits and other investments carry with them an underlying tax obligation. This needs to be considered and often quantified when dividing up your assets.
  • Testamentary trusts – these discretionary trusts that are established by your will are a critical element for asset protection and tax strategies. They are not for everyone, but you should discuss the pros and cons with your Accru adviser.
  • Superannuation – did you know that in some cases your superannuation may not even form part of your estate? This is the case if you have a binding death nomination or reversionary pension in place. Further, there have been some actual cases (confirmed by the courts) where unscrupulous children have paid a death benefit to themselves and left their siblings with nothing! Who controls your self managed superannuation fund is critical.
  • Executor – a person or people with the necessary skills and acumen is essential as this is a highly responsible and trusted position.
  • Life insurance – in the event of premature death, life insurance is a must. This can be structured in a tax effective manner if written through your superannuation fund.
  • Businesses – if you are in business with others, consideration of a buy/sell agreement is crucial. The last thing a business partner wants is to have to find the cash to buy out the surviving spouse, or find themselves in business with that person.
  • Who owns your wealth – for example is the family home owned as tenants in common or joint tenants between spouses? Each is treated differently by your estate. Also ensure you know your capital gains tax cost basis. If the asset was purchased after 19 September 1985, the cost base is passed onto your estate and beneficiaries.

Effective estate planning is a process of thorough investigation, analysis, discussion, application of strategies and continuous review. If you would like to discuss your estate planning, please contact your local Accru adviser.

About the Author

Greg Newbury, Accru Felsers Sydney

Greg heads Accru Financial Planning, Accru Felsers high net worth advisory practice. A tax, super and financial planning expert, he writes and speaks on taxation matters affecting the medical profession, superannuation reform and retirement planning in Australia. Read more.

Leave a Reply

Your email address will not be published

Cancel

News & Tools

  • All News
  • All
    • Business Growth
    • Digital Business
    • Financial Management
    • International Business
    • Audit Risk & Assurance
    • Tax Essentials
    • Wealth & Superannuation
    • Accru News
  • Publications
  • Accru Tax Guide 2017/18 App
  • Fact Sheets
  • Online Portfolio Links
  • Useful Business Websites

Subscribe to our Newsletter

Subscribe to the Accru Newsletter Subscribe

Latest News

An Audit – preparing your business for sale
Read article

Accru Top
Services
  • Accounting
  • Audit
  • Business Advisory
  • Taxation
  • Wealth Management
  • Finance & Insurance
  • International Business
  • Industry Sectors
About Us
  • About Accru
  • The Accru advantage: quality, innovation and value
    • Starting a Business
    • Expanding a Business
    • Reaping the Rewards
  • Testimonials
  • Our People
  • Our Services
  • International Affiliations
  • Corporate Social Responsibility
  • Join the Accru Network
  • Careers
Locations
  • Sydney
  • Melbourne
  • Brisbane
  • Perth
  • Adelaide
  • Hobart
News & Tools
  • News
    • Business Growth
    • Finance & Insurance
    • International Business
    • Risk & Assurance
    • Tax & Accounting
    • Wealth & Superannuation
    • Publications
  • Accru Tax Guide 2017/18 App
  • Fact Sheets
  • Online Portfolio Links
  • Useful Business Websites

Follow Accru Australia

Facebook LinkedIn Twitter Youtube
Subscribe to Accru's e-news

Accru's e-news updates are designed to keep you up to-to-date on essential business topics.

Subscribe

© 2021 Accru

Terms of Use | Privacy Policy

Site by Click2It

×