Many high-net worth individuals are unaware of the limitations in making a will if their goal is to ensure that certain assets go to specific beneficiaries.
Superficially, making a will is encouraged as an essential for all adults whether they have many assets or very few. At the very least, conventional wills meet short-term estate distribution objectives enabling executors to distribute assets immediately and fully.
If nothing else, a will lets your family and friends know your wishes for your assets in the event of your death.
But knowing your wishes is one thing; carrying them out is another.
Successful will making is a holistic process. That process can involve setting up testamentary trusts to achieve lasting and inter-generational arrangements.
In some circumstances, a will may be challenged by a disgruntled beneficiary or other person who feels they should inherit.
This process can prove costly in time and money but as all bequests via wills are in the public domain, it will not be “secret” bequest.
But there are solutions that will prevent disgruntled beneficiaries and others challenging a will.
Keeping assets out of the will with an imputation bond
Imputation bonds are a practical way to hold assets outside the will and the estate while providing tax efficiency, investment simplicity, protections and privacy.
It may be worth considering imputation bonds as part of your estate planning to ensure specific assets get to the correct people as directed. Imputation Bonds nominations are not in the public domain and therefore can be conducted in ‘secret’.
Media enquiries
Richard Atkinson
Head of IFA Product and Relationships
Austock Life Limited
p 03 8601 2095
m 0417 541 897
e RAtkinson@austock.com
w www.austocklife.com