Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shaun and Dimity are in their mid-fifties and have three children from their marriage: Matthew, aged 23; David, aged 17; and Isobel, aged 15. Shaun

Shaun and Dimity are in their mid-fifties and have three children from their marriage: Matthew, aged 23; David, aged 17; and Isobel, aged 15. Shaun has been married before and has one child from that marriage Annabel, aged 26. Annabel has no contact with her father and blames him for the financial hardships that her mother has experienced since their divorce.

Shaun is employed as an architect while Dimity is a fashion consultant. The couples assets, at current market value, consist of the following:

Asset

$

Home and contents

1050000

Bank account

30000

Shares

130000

Holiday home

680000

Managed funds

40000

Life insurance policy

800000

Self-managed superannuation fund total (Shaun and Dimity 50/50)

550000

Superannuation account Dimity

60000

The couple raises the following issues.

  • All of the couples assets are jointly owned between Shaun and Dimity.
  • The couple gave Annabel$180000to establish a business 3 years ago on the basis that she has no further claim on Shauns estate. However, the couple is convinced that Annabel will nevertheless contest Shauns will upon his death.
  • Shaun's life insurance policy is owned by Dimity.
  • Dimitys individual superannuation fund contains a$150000life and TPD policy and Dimity has decided to retain this account in order to preserve the insurance policy. Dimity completed a binding death benefit nomination 4 years ago nominating 100% to be paid to Shaun in the event of her death. Both Shaun and Dimity have completed binding death benefit nominations within their SMSF.
  • The couple each has a will in place leaving everything to each other. They have each nominated their son David as executor of their respective estates. Shaun and Dimity have appointed each other as their respective general power of attorney.
  • Dimity's mother, aged 90, owns an apartment in Queensland. However, the mother is in an aged care facility and in bad health and is no longer living in the apartment. The mother is looking to leave the property to Dimity. The property cost$130000in 1989 and has a current market value of$510,000.
  • The couples son, David, has been married for the past 3 years but he and his spouse have experienced marriage problems for some time. Shaun and Dimity would like to gift David$80000to use as a deposit on a house but, given the marriage problems, do not want the money to be lost in a divorce.
  • The couple would like the family assets distributed in a tax-effective manner upon their death.

Shaun and Dimity are looking to review their wills and seek some advice from you on how best to structure their estate-planning needs. You are required to analyse the couples situation and detail relevant issues and recommend advice that the couple should consider. (15 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting Standards ImplementationA Global Experience

Authors: Mohammad Nurunnabi

1st Edition

1801174415, 9781801174411

More Books

Students also viewed these Accounting questions

Question

What does loan concentration risk mean?

Answered: 1 week ago

Question

What background experience do you have?

Answered: 1 week ago