I spoke to a new client the other day. He is unsure if he has a Will.
If he were to pass away without a Will, his principal asset is about $700,000 in superannuation would be split between his spouse and 4 kids:
- About $550,000 to his spouse
- About $150,000 would be shared equally been the kids
- 15% tax would have to be paid in relation to the $75,000 which would go to his independent adult children, an unnecessary loss of $11,250 to the tax man, because if has a Will which leaves it all to his wife, on condition that she gives $37,500 of her own money to each of the children, no tax is payable, even after the 2 younger kids become financially independent, but the net effect is the same
For tax-effective Wills, see Michael Paterson & Associates.