Estate Planning : An Issue That Affects All Individuals

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Estate planning is an issue that affects all individuals. When looking at estate planning the concepts of superannuation, trusts and wills become of great importance. Depending on the individuals circumstances one estate plan may be more beneficial than another when taking into consideration their personal changing circumstances as well as their intended beneficiaries. Correspondingly a concern can lie with an individual 's net worth, individuals of a higher net worth may require a more stringent estate plan in order to protect their assets to ensure they get distributed accordingly without unnecessary contest, as well as tax evaluation which reaches onto beneficiaries in order to obtain an optimal result. A major consideration of estate…show more content…
When this individual dies the value of their fund will be paid out to the dependants they have nominated. These dependants can be defined as spouses, children, financially dependant individuals as well as interdependency relationships (Superannuation Industry Act 1993, S10 (1)). Additionally, through superannuation a binding nomination can be imposed on the fund. This may be an important consideration in the case of a high net worth individual who has either been remarried, has children from other relationships or is involved in a same-sex relationship. Through imposing this nomination an individual can increase the certainty of the fund going to the desired persons being the nominated beneficiary whilst reducing the risks of challenges to the superannuation fund. This would especially be important to high net worth clients due to the value of their funds, this value may cause or increase the likely-hood of a challenge due to related individuals wanting to obtain a proportion of the wealth; especially if they believe they are entitled to some of the inheritance. A binding nomination reduces the need for the trustee to use their discretion when the time comes to distribute the funds, as it has already been clearly defined by the fund member who should be receiving the funds, the trustee has an obligation to adhere to this binding nomination. Superannuation benefits can be received in
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