How do I look after the grand kids??
Or other nieces, family, friends, charities…
Today I spoke to Carol* who has 6 grandchildren & to Barry* who has 4 grandchildren & one is to his ‘other ‘ daughter.
As both are ‘around ‘ my age then I, as I do, wondered on how they plan to look after their grandchildren later.
As, & I can only guess ,they are both in very good financial position & so would have complicated estate planning strategies such as separate testamentary family trusts.
However, as in maths, is there an easier way?
Allison presented her very simple alternative solution to Robyn & myself on Friday.
Allison mentioned that she had just received a $6m cheque from a widow to leave to her 2 sons later.
But ‘that amount is unusual’ says Allison.
When you & I own personal assets then every asset goes through the will.
Our other investments such as super do not go through the will as they are owned by a trustee or a company or joint or other.
Allison’s solution
- does not go through the will.
- It goes directly to a nominated beneficiary & no one needs to know which eliminates the disputes that often goes with estates.
- I want everyone to be happy.
- It doesn’t even need a Taxx File Number which maybe a privacy concern.
- It doesn’t need a will, which as 50% die intestate, is also relevant.
- I am in control of it & can access it until I pass on.
- The benefits are taxx free unless & I access it ‘early’ .
- There is no limit on what I can contribute & the is no CGT.
- It reduces legal costs.
- It also has a very good case for business protection.
I wanted to hear Allison again to remind us why I have 2 of them.
It made sense as I like the K.I.S.S. Keep it Simple Solution.
K.I.S.S.
Yes Sir.