Last night I was speaking with a client, they were happily telling me they’d recently updated their Will, then they proceeded to tell me how their assets were to be distributed to their partner and their son on their passing.
For some reason the solicitor she’d used had included her super in the Will. Superannuation isn’t automatically an Estate asset. In this case it wouldn’t be as there’s already a binding non-lapsing beneficiary nomination in place in favour of the son.
As I explained the possible tax implications of the current beneficiary nomination I was met with stunned silence. She then asked why the solicitor hadn’t discussed these types of things with her?
She was ticked off and decided she needs to re-do the brand new Will, especially now she knew the tax implications of the bequests and that super isn’t automatically an Estate asset.
The moral of the story is…it pays to have your estate planning solicitor work with your financial planner to protect as much of your Estate as possible.