Estate Plan for the Wright Family Essay Example | Topics and Well Written Essays - 2500 words

Estate Plan for the Wright Family - Essay ExampleContextually, it could also be to circumvent any future challenges represent by his former wife on his assets, joint or individual. From the point of view of Margaret, the driving force of the plan would be in ensuring that only her husband, tom turkey attains from her assets, and not his ex-wife and/or son.It is also necessary to have estate planning in place in order to overcome the sudden and unexpected devastation of spouse, in that it could provide for safety and comfortable living for the remaining members of Toms family, should such an eventuality occur, especially if the spouse dies intestate (without providing a will) or testamentary documents. volition formation, a part of estate planning is an important and crucial exercise for all married couples and families, since the advantages and benefits associated with a person dying with a will or probate outweigh the risks and detriments associated with dying intestate.Tom is an accounting partner in a medium size accounting firm. While his earnings have been satisfactory, Toms in the beginning man and wife was annulled and he had to make heavy borrowings to pay off the divorce settlement. He has an eight year old son from his previous marriage and the nourishment expenses of his son are routed through a Trust, funded by an advance of his inheritance from his parents. As per current Australian tax laws, the capital amount of this trust has been earmarked for the benefit of his son as a result of family breakdown. (Income tax assessment act 1936- sect 102aga n.d.). Current personal wad Toms present wife, Margaret has completed her medical studies and internship, and is currently employed in a local clinic for the last two years. She is competent and confident of gaining partnership status in her present employment. She proposes to be back in her clinic on part-time basis, after a period of six months after delivery of her first sister. With her saving s and amount received as inheritance from her parents, she has do investments in property in her individual name. Her main intentions are that her income and assets be shared only with her husband and not enjoyed by his former wife and son. Beneficiaries circumstances Toms present beneficiaries are his wife, Margaret and at a later stage his children. His former wife and son have been adequately provided for by his settlement and the trust created for child support of the boy. He is not keen on making any more separate allocations to them, seen they have been well provided for, under divorce settlement. Current assets and liabilities and how own Toms assets 1. Goodwill in the accounting firm where he is partner 2. Share in the assets (Plant and Equipment) of the trust which he solely controls. 3. Equity in the Life insurance policy on Toms own life4. Balance of superannuation funds5. House property owned jointly with spouse, Margaret6. Trust which has been earmarked for son of ear lier marriageToms liabilities1. Mortgage payment on house property owned jointly by him and Margaret. This house has been 80% mortgaged and bills need to be paid.2. Trust payments for support of his son.3. Life insurance premium on own life4. Debts incurred for divorce settlemen