1. Couples Testamentary Trust Bundle (press the blue button to start building)
This online bundle, is for a couple, it includes 6 documents:
1. two tax effective 3-Generation Testamentary Trust Mutual Wills;
2. two Enduring Power of Attorneys; and
3. two Medical POAs.
Each of the six documents come with a covering letter on how to sign each document. Select the blue button above to start building the couple’s Estate Planning bundle online.
or
2. Singles Testamentary Trust Bundle
Single? Then instead build online the single person bundle. It includes:
1. a tax effective (3-Generation Testamentary Trust) Single Will;
2. a Power of Attorney; and
3. a Medical POA.
Non-tax-effective (i.e. not including testamentary trust) Wills and individual documents can be built separately by clicking here.
1. Tax effective Wills with 3-Generation Testamentary Trust Wills
The two Tax Effective Mutual Wills both contain a 3-Generation Testamentary Trusts. In the first instance, you leave everything to each other. After you both die, you leave everything to the same beneficiaries.
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:
- Capital Gains Tax
- Stamp Duty
- Income tax
- up to 32% in non-dependency Superannuation tax
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 Trusts
Professor Brett Davies invented Testamentary Trusts in 1994. In 1997 he then invented the 3-Generation Testamentary Trust. The 3-Generation Testamentary Trusts’ additional advantages include:
- better tax advantages
- generally, pay no tax on the estate income for 80 years
- works for three generations: spouse, children and grandchildren
- discretionary in nature: a beneficiary can choose not to set up any trusts
- wound up when no longer required
- each beneficiary gets their own 3-Generation Testamentary Trust
- 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 can take 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 your Will, seeks to reduce this tax to zero.
Divorcing children
The Divorce Protection Trust delays or stops any capital or income going to a 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.
The trusts in your Will include:
- 3-Generation Testamentary Trusts – reduces CGT & stamp duty
- Superannuation Testamentary Trust – reduces the 17% or 32% tax on Super going to adult children
- Bankruptcy Trusts – if a beneficiary is bankrupt
- Divorce Protection Trust – if a child separates it stops the Family Court taking your money
- Maintenance Trust – if a beneficiary is under 18 or vulnerable
2. Enduring Power of Attorney
The second group of documents you are building are enduring POAs. An Enduring Power of Attorney (POA) is a legal document. It allows you to appoint a person to make decisions about your assets. The POA deals with your assets e.g. real estate and bank accounts. A POA stops the government from meddling in your affairs.
[blockquote author=”” link=”” target=”_blank”]Your spouse automatically holds both your Enduring and Medical POA in the first instance. If your State does not allow for substitutes (Victoria, Qld or Tasmania) then you have no other choice. In the other States, you can name your own substitutes if mum and dad can no longer look after each other.[/blockquote]
3. Medical Power of Attorney
While your Enduring POA looks after money, property and wealth, your Medical POA deals with your body. Who looks after you, when you can’t? The government, retirement home or doctors? Should they control your body? Do you trust your family more? If so make a Medical POA (Power of Guardianship).
Wife trapped in a retirement facility?
Our client had a wife. She was trapped in a high-end aged care facility. She had Alzheimer’s Disease. Our client wanted to get her out. The home said he had no right to touch or move a person. Not even a wife. He rang me in tears. I told him to go home and get the Medical Power of Attorney. He got it. The retirement facility saw it. He got his wife out.
Escape a bad hospital
Our client’s wife was in a hospital. The doctors were ‘behaving like Gods, not doctors’. Our client presented the Medical POA. And he moved her to another hospital. There was nothing the doctors could do.
The Medical POA allows you to appoint loved ones. If you lose mental capacity then they decide your:
- personal lifestyle
- where you live
- medical treatment
But only if you can’t make decisions yourself.
A Medical POA is also called:
- Enduring Power of Guardianship
- Enduring Guardianship
- Medical Enduring POA
An enduring guardian makes decisions about:
- where you live, whether permanently or temporarily
- who you will live with
- whether you work
- consent to medical & dental treatment
- protecting life or ‘flicking the switch when in a vegetable like state’
Protects from death duties, divorcing and bankrupt children and a 32% tax on super. Build online with free lifetime updates:
Couples Bundle
includes 3-Generation Testamentary Trust Wills and 4 POAs
Singles Bundle
includes 3-Generation Testamentary Trust Will and 2 POAs
Death Taxes
- Australia’s four death duties
- 32% tax on superannuation to children
- Selling a dead person’s home tax-free
- HECs debt at death
- CGT on dead wife’s wedding ring
- Extra tax on Charities
Vulnerable children and spend-thrifts
- Your Will includes:
- Divorce Protection Trust if children divorce
- Bankruptcy Trusts
- Special Disability Trust (free vulnerable children in Wills Training Video)
- Guardians for under 18-year-old children
- Considered person clause to stop Will challenges
Second Marriages & Challenging Will
- Contractual Will Agreement for second marriages
- Wills for blended families
- Do Marriages and Divorce revoke my Will?
- Can my lover challenge my Will?
- Make my Will fair: hotchpot clauses v Equalisation?
What if I:
- have assets or beneficiaries overseas?
- lack mental capacity to sign my Will?
- sign my Will in hospital or isolating?
- lose my Will or my home burns down?
- have addresses changed in my Will?
- have nicknames and alias names?
- want free storage of my Wills and POAs?
- put Specific Gifts in Wills
- build my parent’s Wills?
- leave money to my pets?
- want my adviser or accountant to build the Will for me?
Assets not in your Will
- Joint tenancy assets and the family home
- Loans to children, parents or company
- Gifts and forgiving a debt before you die
- Who controls my Company at death?
- Family Trusts:
- Changing control with Backup Appointors
- losing Centrelink and winding up Family Trust
- Does my Family Trust go in my Will?
Power of Attorney
- Money POAs: NSW, VIC, QLD, WA, SA, TAS, ACT & NT
- be used to steal my money?
- act as trustee of my trust?
- change my Superannuation binding nomination?
- be witnessed by my financial planner witness?
- be signed if I lack mental capacity?
- Medical, Lifestyle, Guardianships, and Care Directives:
- Company POA when directors go missing, insane or die
After death
- Free Wish List to be kept with your Will
- Burial arrangements
- How to amend a Testamentary Trust after you die
- What happens to mortgages when I die?
- Family Court looks at dead Dad’s Will