Here is a summary of what is “in” versus “out” of your estate as governed by your Will
A common misconception in estate planning is what assets are included in an Estate and governed by the terms of the persons Will. A summary of what is “in” versus “out” of your estate is as follows:
1. Personal assets- any asset that you hold solely in your name is included such as, vehicles, personal items, bank accounts, property (sole or tenant in common), shares etc. However if you jointly own an asset, then the asset is considered outside of your estate such as a joint bank account, property (joint tenant), vehicles etc.
2. Superannuation- super is generally one of the bigger assets and but because it is in a trust environment, again, it is considered an asset outside of your estate. To ensure that your death benefits reach your intended beneficiary whether it is via the Will or directly, you would need to consider a binding nomination. Think of the nomination as a mini-Will for your super and if you want super to be included in your estate, you would need to make a binding nomination to the estate.
3. Trust assets- whilst you may be a beneficiary of a Trust that does not give you an automatic right to Will any asset held in the Trust. In the case of a discretionary trust, you are likely to be one of many beneficiaries therefore assets cannot be directed via a Will.
Confused, or would like further information? Don’t have a Will or thinking about it? Please contact us.
