Single Will – Tax Effective 3-Generation Testamentary Trust

Your Tax effective Single Will gets your assets to your family. Not the taxman.

And to the tax man, I leave…

Every year, Australian taxpayers voluntarily pay the government millions of dollars in ‘death taxes‘. The 4 defacto death duties are:

1. Capital Gains Tax
2. Stamp Duty
3. Income tax
4. For adult children 32% tax on Super

Are you going to be one of them? Proper Estate Planning ensures that your estate goes to those you care about. Not the Tax Man.

3-Generation Testamentary Trust single Will

Professor Brett Davies invented Testamentary Trusts in 1994. In 1997 he then invented the 3-Generation Testamentary Trust. The additional advantages over the Testamentary Trust include:

1. better tax advantages
2. generally, pay no tax on the estate income for 80 years
3. works for three generations: spouse, children and grandchildren
4. discretionary of nature: a beneficiary can choose not to set up any trusts
5. wind up when no longer required
6. each beneficiary gets their own 3-Generation Testamentary Trusts
7. the children when acting unanimously can divide up the class of assets differently. Say you have $1m in shares, $1m in property and $1m in cash. One of your children takes all of the shares. The other the property. The remaining child takes the cash. There is no CGT and stamp duty.

32% Tax on Super going to adult children

After you die your adult children pay 17% or 32% on your Superannuation.  That is a non-dependancy tax. It is on your concessional superannuation. Our Super Testamentary Trust, which you get in these two Wills, seeks to reduce this tax to zero.

Divorcing children

The Divorce Protection Trust delays or stops any capital or income going to the beneficiary who is suffering divorce or separation proceedings. It is designed to reduce the opportunity for the Family Court to get its hands on your money.

The Divorce Protection Trust sits dormant in the Will until needed. The Divorce Protection Trust activates for the benefit of the married person and that person’s children and grandchildren. It removes that person’s power to control the trust while they are suffering the separation.

The Divorce Protection Trust benefits the current and succeeding generations. This helps protect the assets from the Family Court.

Free storage and monitoring of your signed Wills

Your original signed Will is valuable. Keep it safe and let your Executors know where it is stored. (You may wish to email a copy of your Will to the Executors.)

You can store a signed Will at home, at the bank or with the Executors.

Alternatively, you can store your signed Wills with a law firm that specialises in Will storage. There is no cost to you.

Telephone us and we will let you know how to proceed with storing your Will in that law firm’s safe custody.

Once your signed Wills are put in that law firm’s safe custody they are monitored. That law firm monitors death notices. When you die the law firm holding your original Will uses its best endeavours to get the original Will into your executor’s hands. They also help and support your executors on how to administer the deceased estate and help set up the many trusts contained in your Will. The storage of your Will is a free service.

You are building a 3-Generation Testamentary Trust Will. The trusts in your Single Will include:

1. 3-Generation Testamentary Trusts – reduces CGT & stamp duty
2. Superannuation Testamentary Trust – reduces the 17% or 32% tax on Super going to adult children
3. Bankruptcy Trusts – if a beneficiary is bankrupt
4. Divorce Protection Trust – if a child separates stops the Family Court taking your money
5. Maintenance Trust – if beneficiaries under 18 or vulnerable