Blended Families and Estate Planning: When Love Gets Complicated, So Does Your Will
Blended families are now common in Australia, and with that comes a higher risk of accidental disinheritance if estate planning isn’t carefully structured. A key trap is owning the family home as joint tenants, which can override your will and result in children from a previous relationship missing out entirely. Strategies such as using tenants in common, reviewing superannuation death benefit nominations, and considering tools like testamentary trusts, life interests and specific bequests can help balance the needs of a current partner and children from prior relationships. Regular reviews, thoughtful executor selection and open family conversations are essential to reduce disputes and protect everyone’s interests.
Testamentary Trusts: Why More Australians Are Looking Beyond the Simple Will
A testamentary trust is a structure created by your will that can provide long-term tax efficiency, flexibility and asset protection for your family after you die. One of the key advantages is that income paid to children under 18 from estate-derived assets in a testamentary trust can be taxed at normal adult rates, often allowing meaningful income to be received tax-free, which is a significant improvement over standard penalty rates for minors. These trusts can help protect inheritances from relationship breakdowns, business risks and creditor claims by keeping assets held in a trust rather than in a beneficiary’s personal name. For families with larger estates, more complex circumstances or vulnerable beneficiaries, the benefits can easily outweigh the additional cost and administration involved.
Staying Ahead of the Scam: How to Protect Your Wealth from Sophisticated Fraud
Scams are increasingly sophisticated, with criminals using professional websites, fake trading platforms, bank impersonations and even AI-generated voices and videos to deceive people. Investment scams remain the largest source of reported financial losses, but phone-based impersonation, phishing and emerging superannuation scams are also growing threats. Scammers rely on urgency, secrecy and emotional pressure, often targeting people during life transitions such as retirement, bereavement or job changes when decision-making can be more vulnerable. Staying safe means treating unsolicited financial contact with caution, verifying information directly with institutions, strengthening digital security on banking and super accounts, and being aware that if an offer sounds too good to be true, it almost certainly is.
Q & A
- Offset vs Redraw?
An offset account uses your own cash to reduce loan interest, while redraw uses extra repayments from inside the loan and can complicate tax deductibility later.
- What does an executor do?
An executor manages the estate, pays debts and taxes, and distributes assets according to the will, often with professional support.
- How can I grow my spouse’s super?
You can use spouse contributions for a tax offset or split your concessional contributions to help build their balance, subject to the rules.
