Estate Planning for LifePeace of mind for you and your loved ones

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Disclaimer

Important Notice

RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts.

The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

Some Disturbing Facts

More than 45% of adult Australians don’t have a will

In the next 25 years $1,445 billion will be passed to the next generation

Some Disturbing Facts

Divorce rate are high and getting higher:

50% of 1st marriages,

66% of 2nd marriages,

75% of 3rd+ marriages

Some Facts

For every house lost to Fire

2½ houses are at risk due to Illness or Death

22½ houses are at risk due to Financial Problems1

Flood & Fire insurance typical costs $2,000 to $4,000 pa

Illness & Death insurance typical costs $2,000 to $4,000 pa

A good estate plan – typical cost $2,000 to $4,000 once

1 source ABS, RMIT, Crimsafe

Estate Planning For Life – What Is It?

“I can only relax and enjoy my trip if things are in order at home”........Angie W.

1. The Information That Matters

2. A Crisis Management Plan

3. The right legal documents to protect your family’s inheritance

The Information That Matters

3. Structures

1. People

2. Documents

5. Debts

6.Insurances

7. Responsibilities

8. Final Details

THE INFORMATION

THAT MATTERS

4. Assets

A record of the information that your family and advisers need

The Information That Matters

Adobe Acrobat Document

Crisis Management PlanIf the worst happens don’t expect me to think

clearly or know what to do.

I will put one foot in front of the other until I recover.

But in the meantime I need you to give me a simple guide, step by step, day by day.....

.........Angie W

Crisis Management Plan

? What do I need to know? (ITM )

? Who do I need to call?

? What do I need to ask them?

? What is important?

? What can wait?

Crisis Management Plan

Adobe Acrobat Document

Protecting Your Family & Their Inheritance

1. Tax

2. Marital strife (divorce/separation)

3. Death and partner remarriage

4. Bankruptcy or other Legal threat

5. Mental, physical and legal incapacity

6. Behavioural or substance abuse issues

7. Young beneficiaries

A Testamentary Trust

• Like a “will trust” for a young child, but it applies for adults and lasts up to 80 years

• $ don’t pass directly to beneficiaries

• $ pass to a trust controlled by a trustee (normally child) for your bloodline’s benefit

Estate $Estate $Estate $Estate $

Not like this... Like this...

Tax Advantages

$18,200 $37,000 $80,000 $180,000

0% 21.5%

34.5%

39%

47%

Effective 2013 Income Tax Scales(Including 2% Medicare)

Example: Inheritance Invested

Estate of $1,200,000 with 2 beneficiaries

Inheritance amount: $600,000 each

Term deposit interest rate: 6% (say)

Interest earned: $36,000 pa

34.5% income tax: $12,420 pa tax

2 Families: $24,840 pa tax

A Better Solution: 2 Testamentary Trusts

Same Income ($36,000 to each family)

Income allocated to grandchildren (not adult children)

$18,000 income to each grandchild

$0 tax!

Combined annual tax saving across 2 families up to $24,840

$1,200,000 Estate$1,200,000 Estate

$ $

Divorce

What Parents Want What They’re Afraid Of

$ $

$

$

$0

$

Divorce: a better way

$Will Trust

Trustee

Bloodline Beneficiaries

Death & RepartneringWhat Parents Want

+X

What They’re Afraid Of

$

X

$

$0

$

$

$

$

+

Death & Repartnering: a better way

$Will Trust

Trustee

Bloodline Beneficiaries

XFamily Appointor(s)

decide who becomes trustee

X

+

Bankruptcy & Legal Threat

Remember 1x : 2½x : 22½ x

Top 5 reasons for personal bankruptcy:Job Loss

Divorce/separation

Debts and credit cards

Poor health

Adverse litigation

Protecting The Family Home

Inheritance$$

RiskRiskRisk

Family Home Unprotected!

$

Loan Repay bank

Registered Mortgage

Ris

k

Ris

k

Ris

k

Protected by Loan to Trust

Other Issues and Protective Trusts

Age issues

Drug and alcohol dependency;

Mental health issues;

Gambling and other addictive behaviours;

Questionable social associations

Estate Planning For Life

The Information That Matters

A Crisis Management Plan

The right legal documents to protect your family’s inheritance

Interested?