A hint for anyone with companies or trusts

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A key piece of information you can pass onto those clients whose wealth is tied up in structures – most likely a large proportion of your client base – is that having a Will simply doesn’t cut it for transferring their wealth when they pass away.

A Will is ideal for transferring assets that your clients personally own. Assets that sit in companies or trusts, however, are not personally owned by your clients, and therefore cannot be gifted in a Will. Rather than transferring the actual assets, your clients need to consider the transfer of control of their structures, thereby also transferring control of the assets within them.

Appropriate Estate Planning will consider the rules and roles of the relevant structures (as outlined in the company constitution, shareholders’ agreement, terms of the trust deed, etc) to ensure a suitable and legally binding solution is achieved.

Don’t forget to use our Kick Start Your Client’s Estate Plan tool to highlight any complex issues your clients may need to consider when forming their Estate Plan.

If you are unsure about your clients’ Estate Planning needs, call us on 07 3223 6100 or email iant@redchip.com.au to discuss.

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