This is a loaded question and ultimately depends on how much you want to protect your family’s wealth and if you have a company or trust structures.
Cost is a notable factor, as Complex Wills with Testamentary Trusts are cost more but knowing you have the right type of Will design, is an investment that rewards in peace of mind.
Simple Wills
Simple Wills are great for singles or families who have modest assets, do not run a business and are happy to gift family assets to their beneficiaries as they do not need the asset protection a Complex Will provides.
For example, if you have children and want them to each receive an equal portion of your estate (family wealth), then a Simple Will may be right for you.
Complex Wills
Complex Wills are a must if you have significant assets and are ideal for passing on your family’s hard-earned wealth to your kids in a controlled way.
This approach is often called an intergenerational transfer of wealth.
One of the main benefits of Complex Wills is they generally have Testamentary Trusts built into the Wills’ design to provide asset protection for beneficiaries from creditors and family law claims. Also, Testamentary Trusts can be tax-friendly as minors are able to receive income up to the adult tax-free threshold.
If you want to protect family wealth from any unscrupulous partner of your heirs, then your Testamentary Trust(s) can be designed to be “bloodline” and exclude any non-family member from being a Beneficiary.
You should also use a Complex Will if you have:
- a previous spouse or a blended family
- a business – Company or Family Trust
- SMSF
- a child with special needs-Special Disability Trusts