Leah and Cyril Mielczarekczarek are both aged 59. They have been married for 35 years and have a large family consisting of three children and four grandchildren. The family comes together on special occasions such as celebrating birthdays, and other festivities. They own the following assets jointly. Cyril is considering withdrawing his superannuation funds to fund an around-the-world cruise and to invest the remaining amount in managed funds.

Assets	Value
Savings account	$ 6,000.00
Term deposit	$ 15,000.00
Share portfolio	$ 82,000.00
Managed fund (equity)	$ 41,000.00
Car	$ 26,000.00
House contents	$ 60,000.00
House (principal residence)	$ 950,000.00
Holiday rental apartment	$ 460,000.00
Superannuation (Leah) 50% Tax-free	$ 360,000.00
Superannuation (Cyril) 40% Tax-free	$ 450,000.00

a. Explain to the couple what diversification is and how it is relevant in managing risk in their portfolio.

b. The couple is wondering if they need to execute a will at this stage of their life.

i. Explain to the couple. What are some of the circumstances that might require a person to update their will?

ii. Briefly explain the differences between a testamentary trust and an inter vivos trust

c. If Cyril withdrew the total superannuation balance as a lump sum, calculate the tax payable on the lump sum, including the Medicare Levy. Ignore Cyril's other income.Suggest two legitimate ways Cyril could adopt to avoid paying tax on his superannuation lump sum withdrawal.