📊 Did you know? Roughly 2,250,000 Australians—about 20% of taxpayers—own investment properties, representing around 3.25 million properties across the country. Ensuring these assets are effectively managed and passed on is vital for protecting their long-term value.
As an adviser, you know investment properties are valuable assets for your clients, but without a solid estate plan, they can create challenges down the track. For instance, if owned solely, the property becomes part of the estate and is distributed according to the will—or intestacy laws if no will exists. On the other hand, co-ownership arrangements like joint tenancy or tenancy in common can allow for direct transfer of shares to co-owners outside of probate. It’s crucial to understand these dynamics to ensure the estate plan is properly tailored.
Key actions to consider with your clients:
Review ownership structures and their estate implications.
Clarify and communicate intentions with beneficiaries or co-owners.
Explore strategies like trusts or life estates for seamless transitions.
Address potential tax consequences for beneficiaries.
Ensure wills, trusts, and property deeds are regularly updated.
Help your clients protect their investment properties and safeguard their legacy. Clear planning now will minimise future disputes and ensure their wishes are respected.
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