Inheritance

[Terry_w]

I'm a bit confused here.
My understanding is that Inheritance (money) is not taxable... but if you contribute to Super then it is taxed at 45%! Why would you do that if that is the case? Surely I'm missing something here.

Where did you get that from!?
There are 2 ways to contribute to super.
1. The concessional contributions - capped at $25k or $35k for over 60s.
This is taxed at 15% on the way in - but you may salary sacrifice which means you would not be taxed on the wage but divert it before it is taxed, which could save you 46.5%

And,

2. The non concessional contributions. These you cannot receive a tax deduction for because it is paid into the fund with cash after you have earned it, or received it. This is limited to $150,000 per person per year. But there is a bring forward rule which enables a person to pay $450,000 at once by bring forward 3 years of payments. Thus 2 people could contribute $900k in one hit.

 

[Terry_w]

and then give deposit to children as gift. .

May be better to lend the money to your kids. If the divorce you can recall your loan. If they later go bankrupt you would be a creditor...

However if you were to go bankrupt then the loan could be recalled and paid to creditors.

Solution is for a discreitonary trust to lend.

 

[sanj]

That is a large sum of money so the first thing I would suggest is some legal advice on asset protection, before and after death, and some around the area of a post death testamentary trust - there may be some benefits in transferring it to a trust now (extra benefits over and above a normal discretionary trust), but this will depend on a lot of things.

You then need some financial advice on how to invest and in what structure. Contributing it to super may be a good idea because of your age. No tax on income and CGs in super in certain situations. You may also want to lend money to your SMSF to invest, worth considering anyway.

It may or may not be a good idea to leverage into property inside super.

Get the legal advice before you take the money.

Also if you want to benefit you kids, consider asset protection, now and after your death. Loans may be a good idea.

This is good advice. Ultimately you don't know what you don't know so take some time,seek out some good advice and then make an informed decision.

 

[devank]

Where did you get that from!?

Whoops... I got that wrong. Thanks for that Terry.

 

[chindonly]

Moral of the story Camo, is stay away from Financial Advisers. They're clueless.

+1!

Hardly ever hear of any good experiences

 

[Sean M]

Moral of the story Camo, is stay away from Financial Advisers. They're clueless.

I would beg to differ. I would appreciate if you kept your generalizations to yourself.

 

[Sean M]

Hi Camo, given the level of information you have shared I am happy to talk to you about this offline. You are more than welcome to email me to have a chat.

I think there may be a way to do both as Rolf has mentioned. The question is what is important to you. The end result or the method of getting there. Or it maybe a case of both.

Cheers

Sean