A re-contribution strategy involves the withdrawal of a lump sum from your superannuation which you then re-contribute back.
By Ian George - Principal
Everyone knows that the only certainties in life are death and taxes. And while no-one wants to think too long or hard about their mortality, creating a sound estate plan is something we all need to consider. If these issues are not considered, and acted upon, then your hard earned assets may not be distributed in accordance with your wishes on your death. There have been numerous examples of inequitable distributions by estates over the years.
Joint tenants
You can start the estate planning process by listing out the assets and liabilities that you currently have, and listing who is the legal owner of each of these assets. It’s important to realise that any jointly owned assets, including property, will automatically pass to the surviving joint tenant and do not form part of your estate. Assets held by companies, trusts and superannuation funds will also not form part of your estate.
Tenants in Common
It should be noted that your share of assets that are held as Tenants in Common will be dealt with as part of your estate, as they are not jointly owned assets. With property being a big part of most estates, the nature of how you legally own your property is a critical consideration and one that can come as a big surprise to surviving partners and children.
Once you have an understanding of the assets and liabilities that will form part of your estate, you can start to think about how you would like these assets distributed and to whom. Reviewing your assets and relationships and determining the most appropriate means to own property is a critical consideration if you want the comfort of knowing that your wishes will be carried out should anything happen to you in the future. Strategies can also be put in place to provide some certainty about the distribution of assets held by companies, trusts and superannuation funds.
Estate planning is for everyone
Remember, estate planning is an important process to undertake regardless of your age or net worth and the next step is to appoint someone you trust to guide you through the process.
If you want to discuss your estate plans, please get in touch with either Richard Voo or myself in the business advisory team at Countplus mbt.