How Smart Estate Planning Saved a Melbourne Family $450,000
When it comes to estate planning, the smallest details can make a huge financial difference. A recent case handled by our boutique firm of wills and probate lawyers in Melbourne highlights how careful planning, timely action, and expert guidance can protect your loved ones from unnecessary taxes and maximise inheritance.
The Client’s Situation
Our client was 93 years old, with his wife pre-deceased, three adult daughters, and a significant asset portfolio. Having already transferred a substantial public company share portfolio out of his Self-Managed Superannuation Fund (SMSF) into his own name, the remaining major asset was an inner suburban warehouse valued at approximately $3 million.
At this stage, he was in palliative care following a heart attack and had expressed that he felt it was “time” to go. With such circumstances, there was an urgency to ensure his assets were structured efficiently to protect his family.
The Challenge
The warehouse property had not been transferred into his personal name because he had lost the title. He had been informed that replacing the title and transferring the property could be a lengthy process. Without timely action, the property could have remained “inside” the SMSF, which would have created significant tax consequences for his daughters upon his passing.
Had the property stayed in the SMSF, the Victorian Government Stamp Duty alone would have exceeded $300,000.
The Solution
We stepped in as his estate planning lawyers, replacing the title and transferring the property into his name efficiently and without delay. This proactive action saved the family $450,000 in taxes at just the 15% rate.
Shortly after the transfer, the client passed away. Thanks to the estate planning structures we had established, his daughters had multiple options for handling the warehouse:
- Retain the property as an asset within the discretionary testamentary trusts created in his Will.
- Sell the property capital gains tax-free and either take all or part of the sale proceeds or reinvest and distribute income to their children in a tax-efficient manner.
By comparison, if the funds had been invested through a standard discretionary “family” trust instead of one established via the Will, each child would have only a $500 tax-free threshold, with marginal rates up to 47% applied thereafter.
Key Takeaways
This case highlights why engaging an estate planning lawyer early is critical, particularly for clients with complex assets such as:
- Self-Managed Super Funds (SMSFs)
- Commercial or high-value property
- Public company share portfolios
Proactive estate planning allows families to:
- Avoid unnecessary tax liabilities
- Protect wealth for future generations
- Ensure assets are distributed according to the client’s wishes
Working with will and estate lawyers ensures your estate plan is carefully structured, legally sound, and tailored to your family’s needs.
Why Work With Our Wills and Probate Lawyers in Melbourne
Navigating the legal and tax implications of an estate can be complex. Our boutique firm provides guidance on:
- Estate planning and succession strategies
- SMSF asset transfers and tax minimisation
- Establishing testamentary discretionary trusts
- Updating Wills and binding death benefit nominations
By planning ahead, you can protect your assets, minimise tax exposure, and ensure your loved ones benefit exactly as you intend.
Take Action Today
Estate planning is about more than documents — it’s about safeguarding your family’s financial future. If you want personalised and bespoke guidance on how to structure your estate, speak to our estate planning lawyers today.
Contact Tony Kelly Lawyer now.
