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Estate Planning Trap – Jointly held investments and how a retiree could lose their age pension entitlements - get your retirement planning right while you can. 

Investments like shares and managed funds held "jointly" by a couple automatically pass to the survivor, regardless of what you say in your Will.   

 

Family estate plan
Estate Plan

We often see situations where a couple is receiving a part-age pension, one dies, and the survivor ends up with less pension or loses it completely. This is because Centrelink automatically reduces the amount of assets a single pensioner is allowed to have (versus a couple). For the same reason, it's sometimes not a good idea for one partner to leave all their assets to the other (e.g., individually owned shares, etc.).  


This potential financial setback can be averted if your estate plan is not left on 'autopilot' but is regularly reviewed by a trusted fiduciary investment advisor, one who specializes in retirement planning and estate planning and can help mitigate these risks. However, it's crucial to remember that you must take these steps while both of you are alive to ensure the best possible outcome for your financial future.   


If you (or your parents) would like a copy of our Estate Planning Checklist, please email clientservice@providencegroup.com.au with the word "EP Checklist" or book a free 15-minute call with me via our website button to find out there are steps you can take to maintain your age pension.   

 

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