PostHeaderIcon

Ownership of family wealth

A successful 40 year old, looking to retire at 50 and live off investment income, would need to ensure there was sufficient wealth accumulated outside super to at least bridge the 10 year gap.Super also has a potential estate planning sting. If your super goes to non dependents on your death, a tax of 16.5% applies!Tax wise, the family trust also looks an attractive wealth holding structure provided income is distributed to relatively low tax paying beneficiaries. In addition, it has asset protection and estate planning advantages.The usual family trust structure allows wealth to be owned for the benefit of all family members rather than just the primary wealth generators, even though they may retain significant influence as to how wealth is distributed. This separation of ownership and control to some extent protects the family’s wealth from legal actions against individual beneficiaries.More importantly for many clients, family trusts have significant estate planning and succession advantages. Unlike super, nothing necessarily needs to happen to trust assets in the event of the death of either or both parents.As ownership is unaffected by death, there are no forced asset transfers with their potential adverse tax consequences. Trusts therefore provide a mechanism both for tax effective intergenerational transfer of family wealth and for ensuring wealth is retained within the family bloodline on the death of parents.A company is rarely likely to be a desired structure for holding long term passive wealth. Its limited liability characteristic is more relevant to owning a business, as it restricts the potential loss of owners to the capital they contribute to the company.

Pages: 1 [2] 3 4

Miran comment`s:

Selection of texts is correct, add site to your favorites.

25.03.2010


Add comment:
Name:
Sait link: http://
Your message:
Enter today\\\\'s date, 2 digits
(spam protection):
 



News

Fulfill Willing Aspirations for Targeting Sunshine Career by No Credit Checking Student Loans

Fulfill Willing Aspirations for Targeting Sunshine Career by No Credit Checking Student LoansAuthor: Jonesh Taylor Student loans can be secured according to your choice as lenders are here to present government student loans and private student loans especially for those miserable students who want to continue their further education in hope of making their bright future. But they are totally hesitant concerning the loan as they are poorly stricken with worse credit history like insolvency, CCJs, IVA, default, amount overdue and all that.



Popular

Your Direct Mail Sales Letters Must Differentiate You

Your Direct Mail Sales Letters Must Differentiate YouAuthor: Alan SharpeFor two winters I heated my house with an old fashioned woodstove. I learned the art of reviving a bed of dying coals each chilly winter morning, adjusting the kindling, firewood and dampers just right so that the stove would heat my turn-of-the- century farmhouse for the longest period possible. I had the choice of four vendors to buy my hardwood from.



New!

We Also Need to Discuss Your Product Creation!

We Also Need to Discuss Your Product Creation!Author: Ravindeer thakurHave you created a product funnel yet? If you are unfamiliar with the term, it is a marketing method in which you create multiple related products in order to offer them to interested customers. For example, you may have an existing customer in a given niche who has signed up for your inexpensive or free newsletter.