Inheritance
Receiving an inheritance can be an emotional time, as it generally follows the loss of someone close to you. Often, there can be a long period of time before the assets are actually transferred to you and this can be a blessing in disguise. It allows time to review, plan, and prepare to receive the assets.
Will you put some money into your mortgage, or prepare for an early retirement? You may also need to review your own estate plan since additional, unexpected assets or money may cause you to rethink your own estate planning.
When you're ready to make plans, we're here to help. You can contact an Adviser from TelstraSuper Financial Planning on 1300 033 166 or by filling in our online contact form.
Leaving an inheritance
The importance of making a Will can't be underestimated. This is especially the case with one in three Australian marriages ending in divorce^, and blended families becoming increasingly common. Protecting your wishes and ensuring your assets go to the people you wish to leave them to is extremely important.
A will is a legal document that sets out how you would like your assets to be distributed in the event of your death.
If you die without a will, your estate will pass to your eligible next of kin in a prescribed statutory order. This may not be how you wanted your assets to be distributed, and can cause unnecessary delay, expense and emotional distress for your loved ones.
Read more information about Wills.
Taxes
We've all heard the old adage that only two things in life are certain: death and taxes. There may be tax implications if assets that are transferred to your beneficiaries are later sold.*
Death benefits will be tax-free if paid to a person who is a dependant for tax purposes. The beneficiary must be considered a dependant at the time of death in order to qualify for the dependant tax treatment.
If a death benefit is paid to a non-tax dependant, the taxable component of the benefit will be taxed at 15% (plus Medicare levy). If the death benefit contains an insurance component with an untaxed element, the untaxed amount will be taxed an additional 15%.
Taxation is a complex area and it's best to get expert advice. You can contact an Adviser from TelstraSuper Financial Planning on 1300 033 166 or by filling in our online contact form.
Your super
There are a couple of options for how you can decide who gets your super on your death. Learn more about binding and non-binding nominations.
^Source: https://mccrindle.com.au/insights/blog/fast-facts-marriages-australia/
*Source: Inherited assets and capital gains tax | Australian Taxation Office (ato.gov.au)
We're here to help
At TelstraSuper we're here to help you build a secure financial future. If you're thinking about leaving an inheritance, call 1300 033 166 or fill in our online contact form.
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