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Why SMSF Estate Planning Is A Fact Of Life
We first posted this item in November 2013. However, it's well worth revisiting because the issue is still very real and relevant.
Nobody wants to die. But it's one of the certainties of life that many SMSF trustees, baby boomers in particular, seem to be turning a blind eye to. As a result, there's a growing concern that when the inevitable happens, many will have failed to put the appropriate estate planning in place.
And it's not just the boomers.
Gen Y, the first generation to grow up with compulsory super, are even more reluctant to consider the issue. From an advisor's point of view, this is a time bomb ready to blow up in the face of not so much the departed as those left behind.
Most people simply assume that the problem will be taken care of by their will. But it's not quite that straightforward; you have to get the proceeds in the will in the first place.
At the heart of the matter is a widespread misunderstanding of the estate planning process, often leading to non-tax effective or incorrect transferral of assets. Mortality is a tricky issue to broach, but unless you want to leave your loved ones with a problem that could have been avoided, it's important to face the fact.