Structuring a will to provide max flexibility to beneficiaries (children)

Discussion in 'Wills & Estate Planning' started by Skin, 23rd Dec, 2022.

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  1. Skin

    Skin New Member

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    23rd Dec, 2022
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    Hi there,

    Greatly appreciate being part of this group and the collaborative approach to wealth planning and creation.

    Is there a "best" or even "better" way to structure a will so that the beneficiaries are afforded maximum flexibility in the way the funds can be distributed/received by them. As an example, with 2 children likely to share in the assets of the deceased 50:50, is there a structure which allows the beneficiaries to "manage" their part of the distribution.

    The concern is that a direct distribution of the assets could adversely impact assets and/or income tests associated with other programs.

    Any assistance and/or guidance would be both great and appreciated.

    Best
    Skin
     
    Skin, 23rd Dec, 2022
    #1
    Colin Rice likes this.
  2. Trainee

    Trainee Well-Known Member

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    Ask your lawyer about separate testamentary trusts and choose your executor based on legal knowledge and financial experience.
     
    Trainee, 23rd Dec, 2022
    #2
    wylie likes this.
  3. wylie

    wylie Moderator Staff Member

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    My parents didn't want to split their assets into two testamentary(?) trusts, so left it in one trust. It's way more complicated than that, because of our oldest brother, but ignoring that, they didn't want to have a situation where one house was ultimately worth considerably more than the other to create issues between the two of us.

    Ultimately, it tied us together financially for considerably longer than was necessary, while we managed our father's affairs, and then the law suit, and then what was left, we split amicably with properties valued to divide it fairly. I kept a property, he kept the shares, with transfer duty, capital gains tax and all that adjusted for.

    It was complicated, but we respect and care for each other, and wanted it to be smooth, which it was. We have a great relationship, and always will.

    We've done things differently in our own wills, to avoid our sons being tied to each other financially, so that the whole asset pool (when last man standing turns up the toes) be split into three (equal value) testamentary(?) trusts. That will not tie our sons financially to each other.
     
    Last edited: 24th Dec, 2022
    wylie, 23rd Dec, 2022
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Separate discretionary trusts in will with equalisation clause
     
    Terry_w, 23rd Dec, 2022
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    alicudi and Scott No Mates like this.
  5. Skin

    Skin New Member

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    Terry, are your folks able to take on the assignment for us. notwithstanding we are Melbourne based?
     
    Skin, 27th Dec, 2022
    #5
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I am not able to take on new clients for a few months due to long waiting list. But I can do a will no matter where you are located, under Australian law.
     
    Terry_w, 27th Dec, 2022
    #6
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