Widowed Lady

Barbra – A review of superannuation on the passing of a spouse

Numbers Speak For Themselves!

1 %
Reduction in annual ongoing superannuation fees
$ 1
Reduction in potential death benefits tax payable by adult children

What Were The Client’s Goals and Frustrations? this is her story!

When our ongoing client Barbra* (70) recreantly lost her husband she contacted us to discuss what would now happen to her superannuation, as it had been structured to automatically continue to make payments to her husband in the event of her passing. Barbra had adult children (both biological and stepchildren of her late husband) and wanted to ensure funds were passed on as per her wishes.

*Barbra is used as an alias to protect the privacy of our client. All other information contained in this case study is based on the real outcomes we were able to achieve.

Challenge Highlights

Like many clients, Barbara’s children were all adults, and as such, passing superannuation benefits on to them often results in unexpected tax consequences for the children.

THE SOLUTION: HOW DID WE HELP barbra SOLVE HER PROBLEMS AND WORK TOWARDS HER GOALS?

To assist Barbra in reviewing her situation following the passing of her husband, we provided her with advice to restructure her superannuation products and investments, take advantage of strategies to reduce any potential tax payable by her children in the future, and update the death benefit instructions to ensure her superannuation funds were directed to her direct bloodline in the event of her passing.

Calculations

Superannuation strategy advice

Provided strategic advice to reduce the taxable components of Barbra’s superannuation funds

As part of our advice to Barbra, we reviewed the tax components within her existing account, and provided strategic contribution advice to reduce the potential tax payable by her children in the event she were to pass away.

In Barbra’s case, we were able to completely mitigate any future tax payable, saving her children up to $12,767 in tax! 

Please note – the amount of tax that may be payable is specific to every person and is based around the way funds entered the superannuation fund and what tax treatment the funds received at this time. Every superannuation account needs to be examined on a case-by-case basis to determine the potential tax implications. 

Product and investment advice

We reviewed Barbra’s existing superannuation product and underlying investments

As we were making major changes to Barbra’s superannuation account, this presented an opportune time to review the product and underlying investments. 

As the value of the fund had been decreasing (as Barbra has had been drawing a regular income from the account) her exisitng product was no longer as cost-effective as some alternative. Following an in-depth review we were able to move her superannuation to an alterative product, reducing her ongoing fees by 42.77%, helping her funds to last longer in retirement. 

Investment Statement
Estate Planning

Superannuation Estate planning advice

Review of Barbra’s superannuation death benefit nominations

We assisted Barbra in updating the death benefit instructions over her superannuation funds to ensure these funds (unlike the assets held jointly by her and her late husband) were passed to her biological children only. 

This was structured in a way that allowed for a quick processing time and reduced risk of the direction being able to be contested as part of any estate dispute in the future.

The Results: WHAT WERE WE ABLE TO ACHIEVE FOR barbra?

By working with Barbra, we were able to provide her with peace of mind that her funds would be passed to her children in accordance with her wishes, while also reducing the tax they would pay.

HOW MUCH DID THIS ADVICE COST Barbra?

As part of providing Barbra with this valuable advice, we prepared a Statement of Advice document to ensure she had all the information she needed to make a decision that was right for her, and then assisted her in implementing the changes.

Value GUARANTEE

Still not convinced that our services may be able to provide you with the same value as our exisitng client? We understand; taking the step of reaching out for help and putting your trust into a Financial Adviser is a big step, especially when you are unsure what the outcome may look like.

That’s why we offer our Value Guarantee! 

If you would like to see what receiving advice may look like, we are able to complete some basic strategy and product modelling, and a set of financial projections to demonstrate the value our services could add to your specific situation.

If we are unable to show a benefit of over $1 (after fees) then we will refund the initial cost, and if you like what you see and would like us to provide you with full financial advice, we will deduct any amount already paid from your overall quote.

Now you can reach out for help with the comfort of knowing you have nothing to lose and everything to gain!

MORE CASE STUDIES

Important Information

Our Financial Services Guide, Adviser Profiles, and Privacy Policy can be found on our Important Information page.

Please note, the information on this page contains information that is for Australian Residents only

Making It Happen Pty Ltd trading as The Wealth Affect is an Authorised Representative of Lifespan Financial Planning Pty Ltd AFSL 229892

ready to get your financial future in order?

book an obligation free consultation with one of our experienced Financial Advisers

REGISTER FOR REGULAR INSIGHTS FROM OUR SPECIALIST TEAM

No spam, just exclusive content and resources.