Estate Planning

Saw this "financial planner", he wants over $5K a year to do the "planning" for me. Because these people are mostly of dubious value & clueless, I decide to self educate and leverage the combined wisdom of my fellow SSers. What I need to read up are pension, estate planning etc. So If I buy an IP for $500K today, assume double every 10 years, in 20 years it will be worth $2m, the cgt will be $375K. Is there a way to reduce the tax such as using testimonial trust ?
 
Do you mean testamentory trust? Be careful trying to do thus stuff on advice from anywhere other than someone who really knows what they are talking about.

$5K per year doesn't sound right. My parents are paying about $5K total for very good advice from an estate planner and that includes however many meetings we need, ongoing planning to move things to a trust. This chap is worth every cent as our family situation and parents' needs for spot on timing with selling, transfering etc is crucial to minimizing tax.

He also liaised with their accountant and solicitor to get wills drawn to ensure things run smoothly when the time comes.

Don't trust this stuff to an Internet forum, workmates or even reading up yourself. Pay for solid advice and save the problems at the end.
 
Wylie, yes he definitely wants over 5 grand per year. I don't mind paying reasonable fees for good trustworthy advice, but in this industry 90% don't know/don't care what they are doing, 5% charge ridiculous fees, it is hard to find the remaining 5%. Mind to give the name of the planner or I could PM you.
 
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Most estate planning should change with your circumstances. It involves rolling ANY property in trusts/companies/personal names into testamentary trusts so you don't need to update your will every time you buy or sell a property.

We did ours a few years ago now and I think its time to get it reviewed, that's all.
 
I know a fin planner that charged $5k per year. His goal was to have 100 clients.

Will this guy rebate commissions for that. The commission on an insurance policy will be about $1000 to $2,000 for starters.
 
thanks tubs, will do more research on this. Terryw I have not gone back to that FP as I thought the fees were just ridiculous, been in contact with the FP Wylie mentioned. With so many "financial planners" around I am surprised they are still asking $250 per hour instead of $25 ph !
 
thanks tubs, will do more research on this. Terryw I have not gone back to that FP as I thought the fees were just ridiculous, been in contact with the FP Wylie mentioned. With so many "financial planners" around I am surprised they are still asking $250 per hour instead of $25 ph !

Your kidding right?

You cant even get your car washed by a bunch of indians for that.
 
Do you mean testamentory trust? Be careful trying to do thus stuff on advice from anywhere other than someone who really knows what they are talking about.

Testamentary trusts are brilliant for passing wealth through generations.

The only problem is that you have to die first.

Cheers,

Rob
 
Testamentary trusts are brilliant for passing wealth through generations.

The only problem is that you have to die first.

Cheers,

Rob

Not necessarily. That house you wanted to buy - could be purchased in your 99 year old grandfather's name with a testamentary trust set up.

In a few years your kids could be getting up to $15,000 pa tax free each from the trust.

The only trouble is you would have to use cash to purchase it.
 
You need to remember that you get what you pay for in many cases. Financial planners are very often not independant, and often incapable of actually providing you with independant advice. They have to work under an FSL (Financial Services licence) and the company that holds the licence will, in most cases, dictate what advice clients receive ie the plan they provide will be very much biased towards certain types of products.

I do agree, though, that over $5k per yr sounds expensive unless you have very complicated circumstances.
 
Not necessarily. That house you wanted to buy - could be purchased in your 99 year old grandfather's name with a testamentary trust set up.

In a few years your kids could be getting up to $15,000 pa tax free each from the trust.

The only trouble is you would have to use cash to purchase it.

If you pay for, or gift, on the relative's requirement to hold on trust for your kids then this is not a testamentary trust as it is already held by your relative as an inter vivos trust, or maybe even a debt of their estate. This will not qualify as excepted income.

Gifting to your elderly relative in the mere hope that they will leave it in their will for your kids is a bit risky !!

Cheers,

Rob
 
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