Luke on 2CC - Can a testamentary trust protect your kids?

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired live on Friday 12 July 2024. This week’s show looks at an important estate planning issue, and one that’s very important for those with people who have minors or those under 18 in their lives. This week Luke explores Testamentary Trusts, what they are, and why you might consider them as part of your own financial planning strategy when it comes to planning your estate. Thank you for joining us live on 2CC or your favourite podcast streaming service with ‘The Strategy Stacker - Luke Talks Money’.
Key topics covered include:

• What is a testamentary trust?

• The Will must allow for the use of this vehicle, so it must be written into a Will.

• What are the benefits of a testamentary trust from a tax perspective?

• What about the benefit of asset protection?

• What about superannuation, your Will and a testamentary trust? Can you direct your super to your Will?

• Don’t forget about the complexities of blended families or minors who might not make great decisions.

• What are the differences between family trusts and testamentary trusts?

• Luke shares his top tips around testamentary trusts. Seek advice if you need help.

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This podcast is also available on Apple Podcasts and Spotify - ‘The Strategy Stacker - Luke Talks Money’
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Are your estate plans in order for your kids or grandkids?
If you have minors in your life, you may consider adding a testamentary trust to your Will. There are some important benefits they offer around tax and asset protection. Make an appointment to speak with a financial planner and a family lawyer to implement your estate plans.
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us (www.envisionfi...) form to make an appointment, for a confidential discussion about your situation. Luke can also refer you to a family lawyer who can work with you to meet your estate planning needs. He can also discuss with you how your superannuation estate planning works.
Luke will return to 2CC to talk about other ‘Money Matters’ next week. You can catch up with ‘The Strategy Stacker - Luke Talks Money’ podcast at a time that suits you.
We look forward to your company again and Luke’s book Smart Money Strategy is out now. (www.envisionfi...)
(www.envisionfi...)

[@neolion8150]

Saw it soon after. Thanks

[@neolion8150]

Great work again guys. 👍

[@thestrategystacker]

The video should be up later today in addition to the podcast.

[@swolath]

I must say you’re my favourite financial KZbin advisor. Do you have clients in Melbourne. Doing pretty good but one day I think I’ll like to get professional advice for retirement and estate planning.

[@thestrategystacker]

@@swolath well thankyou. Very kind. We have clients all over where you live doesn’t matter. Just reach out when you need me.

[@vanessawoo6980]

Hi Luke. Great podcast. I am confused by what you're saying and what my accountant is telling me. My mother recently passed and left an investment unit to my brother and I in a testamentary trust. I was looking to distribute part income and the CGT liability to my children (under 18) when the investment unit is sold. My accountant says that the children (minors) are taxed at top marginal rate and they don't get the tax free threshold although I understood if the income/profit is from a Trust, they do get this benefit. Are we better to keep the property in my mother's Estate and the Estate pays the tax or do we transfer the property into the Trusts for both my brother and I? Love to hear from you.

[@thestrategystacker]

Best you get a second tax opinion to be sure.

[@vanessawoo6980]

@@thestrategystacker thanks Luke. Can you recommend someone to help with my queries?

[@thestrategystacker]

@@vanessawoo6980 I would talk with Rhys Kyburz from RSM Canberra.