Page 12 - Wealth-Adviser-Issue-113 (FWP)

ISSUE 113
JUNE 2025
Ask a is tax-free, what is taxed concessionally, and whether any of
it can be contributed to superannuation. If you don’t plan to
Q&A: Question return to work immediately, you’ll need to think carefully

about how to stretch these funds, possibly setting up a short
to medium term cash flow strategy. Depending on your age
Question 1: and total savings, making a personal contribution to super

A friend mentioned they’re setting up a family trust to or using a recontribution strategy might help reduce long-
protect their estate, how does that actually work? term tax. Alternatively, you may want to invest some of the
Family trusts are often used as part of estate planning funds outside super to maintain access. Timing matters too,
to help protect assets and control how wealth is passed on. certain contributions have to be made within strict windows
Unlike a will, which becomes a public document after death, after the payout.
a trust can provide greater confidentiality and flexibility.
Assets held in a trust don’t automatically form part of your Question 3:
estate, which may offer protection from challenges to a will My partner and I want to take a career break to travel, how
or reduce the risk of family disputes. The trustee manages can we plan financially to make it possible?
the trust and has the discretion to distribute income and Taking time off work to travel or pursue personal goals
capital to nominated beneficiaries. This can help you can be incredibly rewarding, but it also requires thoughtful
support family members according to their individual needs financial planning to avoid putting long-term goals at risk.
while also maintaining a level of control over when and The first step is understanding how much you’ll need to
how they receive funds. Trusts may also offer protection cover your living and travel costs during the break, and how
from creditors or relationship breakdowns in some cases. you’ll fund them, whether from savings, temporary part-
However, they are not suitable for everyone and come with time work, or liquidating investments. You’ll also want to
compliance requirements. review your superannuation contributions and insurances,
A financial adviser and legal professional can help deter- as pausing employment may affect both. If you’re planning
mine whether a trust aligns with your broader estate goals. to travel overseas, you might need to rethink how your
money is accessed, managed, and protected across different
Question 2: jurisdictions. Importantly, this is also a good time to assess
I’ve recently received a redundancy, what should I do with your investment strategy, tax position, and any opportuni-
my payout, and how can I make the most of it? ties to reduce fixed expenses during your break.
Receiving a redundancy payout can be both overwhelm- A financial adviser can help you map out a strategy so
ing and an opportunity to reset financially. It’s important to you can enjoy your time off without compromising your
understand how your payment is structured, what portion financial future.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

12