In Australia, the most powerful asset transfer tool could be Testamentary Trust.
What is good about testamentary trust?
This is a different way to pass assets and unlike the more traditional will, assets do not go to the beneficiary; rather they go to a trust and the control of the trust is with the beneficiary.
As normal, on death there is no Capital Gains Tax or Stamp Duty liability on the transfer.
You give your children control, not ownership.
They can be free to sell, keeps or share the assets or benefits within their desired family group unlike a normal will which restricts these benefits to only the new owner.
The difference is your children do not own the assets, so in a liquidation or family law court proceedings the assets in the testamentary trust, if properly drawn up, would not normally be available.
They are protected. Also income/capital gains directed to a minor child from a Testamentary Trust is taxable at adult tax rates with the tax free threshold applying i.e. no 60% tax.
However, another best intangible asset you can pass to your next generation is to be their role model from knowledge, finance, and perception to life attitude.
What is good about testamentary trust?
This is a different way to pass assets and unlike the more traditional will, assets do not go to the beneficiary; rather they go to a trust and the control of the trust is with the beneficiary.
As normal, on death there is no Capital Gains Tax or Stamp Duty liability on the transfer.
You give your children control, not ownership.
They can be free to sell, keeps or share the assets or benefits within their desired family group unlike a normal will which restricts these benefits to only the new owner.
The difference is your children do not own the assets, so in a liquidation or family law court proceedings the assets in the testamentary trust, if properly drawn up, would not normally be available.
They are protected. Also income/capital gains directed to a minor child from a Testamentary Trust is taxable at adult tax rates with the tax free threshold applying i.e. no 60% tax.
However, another best intangible asset you can pass to your next generation is to be their role model from knowledge, finance, and perception to life attitude.
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