Legacy Planning

Ensure your assets are distributed in line with your wishes

“I feel protective over my mother who has spent her whole life elevating my father’s legacy.”

This statement from Lisa Marie Presley resonates with so many families when we deal with legacy planning.

Legacy planning is an important financial, legal and taxation tool that prepares people to bequeath their assets to a loved one or future generations after death.

Some compelling reasons to create a legacy plan:

· Control Over Your Assets

If a person passes away without designating their beneficiaries, their assets will get distributed according to the intestacy laws. Their intended beneficiaries may only receive some of their assets. In a worst-case scenario, they may not get anything. If a person passes away without creating a legacy plan, their family may fight over their estate, which could result in substantial costs surrounding their estate.

· Reduce Tax Burden

Unintended tax may be imposed on a deceased person’s estate and beneficiaries may face significant tax when they deal with the assets. An effective legacy plan will allow you to transfer your wealth to your beneficiaries with the lowest possible tax bill. By planning appropriately, you will determine the true value of different parts of your estate and minimize the impact of taxes on them.

· Avoid Family Disputes

Creating a legacy plan is one of the most effective ways to avoid family disputes that may arise if a person passes away without designating who gets what. A legacy plan will also allow you to choose who will control your assets if you get physically or mentally incapacitated.

· Ensure Wishes Are Carried Out

Whether you want to make arrangements for a child with a health problem or set up a trust for a beneficiary for asset protection, it makes sense to create a legacy plan. An effective legacy plan will help ensure your legacy gets distributed in line with your wishes.

Steps When Building a Legacy Plan

· Make a list of assets and liabilities

· Choose your beneficiaries and designate guardians

· Engage financial, taxation and legal advisors to prepare your legacy plan

· Discuss your legacy plan with your family

· Review and reassess your plan regularly

Key Takeaways

• Legacy planning is an important financial, taxation and legal tool

• Legacy planning can help mitigate family tax issues and family disputes

• Legacy planning ensures your wishes are carried out

• Legacy planning provides control of your estate

How We can Help

Albus legal advises on legal issues including estate planning, asset protection, trusts, taxation, self-managed superannuation fund and charities with a key focus on preserving wealth, legacy planning and transferring wealth to future generations. Contact us to discuss your needs.

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