A transfer of wealth occurs when assets move from one person to another. Common examples of a wealth transfer include:
- Receiving an inheritance from someone else
- Leaving an inheritance to someone else in your Will
- A payment from your superannuation fund to another person
- Putting your assets in a company or trust for asset protection
- Helping your children to buy their first home
- Splitting assets in the event of a divorce or property settlement
Surprisingly, giving assets away can often be more complicated than it seems. There are a range of issues that need to be considered which include among other things:
- Will there be capital gains tax on the disposal of current assets?
- Will there be Stamp Duty for the person receiving assets?
- Does your existing Will need to be updated after you make a change?
- Which assets does the will even cover?
- What happens to joint assets and superannuation assets not covered by a Will?
- Do you own property as Joint or Tenants in common?
- Do you leave assets to people directly or via a testamentary trust?
- Do you sell assets and give someone cash or transfer the asset itself to that person?
- Should you gift or loan assets to children to help them out?
- Are there Centrelink implications from gifting assets that you need to consider?
- Should you make a binding death nomination for your superannuation or leave funds to your dependants as an income stream?
- Are your beneficiaries going to pay tax on the payout of your superannuation?
- If you receive an inheritance from someone else, what exactly should you do with it?
Whilst many people choose to ignore it and put their head in the sand, it is an extremely important area and getting it right can be critical for the sake of your family. There is nothing more distressing after a death than to see a family breakdown take place when things turn out differently to what they expect. We help you navigate this area and understand the implications of different options and together with your solicitor can help to reduce the chance of problems before they occur.