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Family trusts are very interesting but I for me as I approach retirement I am using super as a means of lowering tax in both the short and long term. With access not to many years away it seems like the best plan for me, however if I was 10+ years younger I could see how a trust would be more beneficial.
Agreed that superannuation is a tax effective tool to prepare retirement. I'm editing a video about Super Death Benefit Tax, that everyone should be aware of - should be ready soon.
There is no clear answer for how much tax can be saved because the beneficiaries' marginal tax rates are different. Let's oversimply it, say the annual running cost is $2500, a person could manage to distribute the dividends from 47% MTR to 37%, it would take $31,250 dividends to make it even. If the income return is 3%, the assets size would be roughly $1m.
The one thing I was wondering, if a spouse passes away and the alive spouse forms a new relationship, does a trust protect the family jewels if the new relationship goes south and the new partner turns out to be a gold digger?
How do you think of Family Trust? 🔎Be a smart Value investor by using Seeking Alpha Premium to get 20% discount with 7-day trial: www.sahg6dtr.com/392M6MZ/R74QP/
Family trusts are very interesting but I for me as I approach retirement I am using super as a means of lowering tax in both the short and long term. With access not to many years away it seems like the best plan for me, however if I was 10+ years younger I could see how a trust would be more beneficial.
Agreed that superannuation is a tax effective tool to prepare retirement. I'm editing a video about Super Death Benefit Tax, that everyone should be aware of - should be ready soon.
I have been interested in the feasibility of a family trust. I wonder how much in assets would justify the tax benefits?
There is no clear answer for how much tax can be saved because the beneficiaries' marginal tax rates are different. Let's oversimply it, say the annual running cost is $2500, a person could manage to distribute the dividends from 47% MTR to 37%, it would take $31,250 dividends to make it even. If the income return is 3%, the assets size would be roughly $1m.
The one thing I was wondering, if a spouse passes away and the alive spouse forms a new relationship, does a trust protect the family jewels if the new relationship goes south and the new partner turns out to be a gold digger?
The wealth can be preserved in that situation as long as it's clearly stated in the Trust Deed.
Get a prenuptial….dont be shy in a relationship if one party has ALOT more wealth