How to look after our grandchildren with a simple solution.
I have just attended a seminar organised by a retirement village that is still being built handy to home.
It is always useful to attend these seminars as they provide a different perspective.
Retirement villages are mushrooming up in many suburbs as my generation hits the age barrier.
This seminar certainly introduced me to a different funding model for retirement villages & now I understand why the possible 30% exit fee is there.
It was a lunchtime seminar & at my table were two ladies who had just purchased & will move in when the village is complete.
These two ladies had sold their properties both within three weeks on the market.
However the discussion came up at the table that we were the lucky generation.
They would not be wanting to buy a house now.
The general comment was that their children were now all comfortable & the table was more concerned with the grandchildren.
How do you look after grandchildren?
What if you have had two marriages with those complications?
The usual answer is through the will but it is a known fact that 40%+ die intestate.
IE without a will.
Then as I have read this year Bob’s will was challenged & I have a barrister client who only deals in such matters.
There is also the testamentary trust favoured by legal eagles.
Maybe gift to our grandchildren but the government limits that to 30,000 over 5 years.
But there is a MUCH simpler SOLUTION where you own it & hence control it & you can name a beneficiary.
The funds can be redeemed anytime.
It bypasses the will & goes straight to the named beneficiary who could be grandchildren as they will have HECS or HELP or other debts.
or in fact a charity.
No hold ups by the solicitor & it can be any amount & is taxx paid.
And there are more pluses for it.
It is very suitable for high income earners also as it may have a significant taxx advantage & it is outside super & hence accessible.
Very simply I have had a version of it for 34 years & a contemporary of mine recently admitted to having a 2m one with one company.
Yes it may be the easiest & best way to care for our grandchildren.
It will make sense & it is a different perspective than the usual & often unsatisfactory.
As we are reminded celebrating 50 years since the moon landing Earthrise
was a different perspective but what a moment.PM
or call John McAuliffe to discuss its suitability.