Category Archives: Articles and News

We have had a number of enquiries about Loans v Gifts to Children

Loans v Gifts to Children

We have had a number of enquiries about Loans v Gifts to Children

In many families, there is a movement of money from parents to children. How do you want to record the transaction? Should it be a gift or should it be a loan?

Giving your children money. Loans vs Gifts

What is the best way to provide children with financial assistance. Many parents think they are being kind when they gift money to children. However, such is not always the best course of action. If the child divorces or goes bankrupt the money is lost.

But I love my children

There is nothing wrong with helping your children financially. However, it is important to protect the monies in case the following occurs:

  1. they divorce
  2. go bankrupt
  3. suffer from drugs
  4. suffer a mental condition
  5. stop loving you and there are family disputes
  6. you run out of money yourself, in your old age or retirement

Therefore, to protect your loan a law firm can prepare loan agreements that comply with the Family Court. Homemade loan agreements may not work as they carry less weight with the Family Court and Bankruptcy Court. Why take the risk, discuss with a lawyer your situation?

Documenting loans to children

Never ‘give’ your children money. Always ‘lend’ them money ‘payable on demand’. Get it back if something goes wrong.

A loan is not always for property and the grandchildren’s school fees. You can also fund the children’s Superannuation fund, discuss this with a lawyer.

At different times, it is common to benefit one child over another with money. If you benefit one child over another it can be  adjusted automatically at the time of your death. Say you lend one child $500,000 and the other child $300,000 that can be adjusted after your death. This will allow everything to remain fair.

When making loans to children:

  1. talk with all your children together about the loans
  2. never gift children money – only loan them money (this protects both you and them)
  3. don’t rely on home-made loans or IOUs – we can assist you in having a legally prepared Loan Agreement through a law firm.

Loan Accountants & Unpaid Present Entitlements

In a Family Trust the parents will often distribute income to the children to take advantage of lower rates of tax. The children never see the money. Instead, they loan it back to the Family Trust. This is called an Unpaid Present Entitement (UPE). Sadly, at any time the child can ask for the money. Deeds of Debt Forgiveness can be prepared.

It may be wise to speak to a lawyer about the following:

  1. Loans to children – get 100% of the money back if the child divorces, overrides the Family Court.
  2. Loans to high risk spouse – ‘safe harbour’ mum lends money to an ‘at risk’ husband who is a professional or business owner.
  3. Deed of Debt forgiveness – children forgive debt that the Family Trust owes them

(Legal Consolidated Barristers & Solicitors, 2017)

 

Federal Budget 2017

Federal Budget 2017 

The Australian Government is creating incentives to improve housing outcomes, including the proposed legislation of:

‘Helping first home buyers to save a deposit through voluntary contributions into superannuation’. This is still being considered

For further information about the budget visit http://budget.gov.au/2017-18/content/glossies/overview/download/Budget2017-18-Overview.pdf

In addition, if you would like to discuss any of the Federal Budget topics feel free to contact Marijana Ravlich on (08) 9322 1882.

IFA Excellence Awards 2016

IFA Excellence Awards 2016

The IFA Excellence Awards are the only industry awards dedicated exclusively to boutique and non-aligned financial advisers.

LIFE Financial Planners is proud to announce that we have been nominated as finalists for the third year in a row in the category of Best Client Servicing – Company. As an independently-owned financial advice company that pride ourselves on providing the best personal advice and customer service we are extremely honoured to be finalists in this category again.

 

IFA 2016  IFA Excellence Awards 2016 IFA 2016

From the Financial Planner

From the Financial Planner

Marijana shared her five top tips for women to get ahead financially in The West Australian’s Mind+Body lift out on Wednesday, March 26th, 2016.

If you’re looking to get your finances in order and start planning for the future, these tips are a great place to start. For further information or to get started with your free Financial Health Check you can contact us here http://www.lifefinancialplanners.com/contact-us/

The article from the Mind+Body life-out is available here:

From the financial planner From the Financial Planner From the Financial Planner From the Financial Planner 24 March 2016

From the Financial Planner, Independent Financial Advisers, Life Financial Planners, financial adviser, financial planners, personal insurance, debt management

From the Financial Planner at Murray Street, Independent Financial Advisers at Murray Street, Life Financial Planners at Murray Street, financial adviser at Murray Street, financial planners at Murray Street, personal insurance at Murray Street, debt management at Murray Street

From the Financial Planner at Australia, Independent Financial Advisers at Australia, Life Financial Planners at Australia, financial adviser at Australia, financial planners at Australia, personal insurance at Australia, debt management at Australia

Matters of death and life

Matters of death and life

Marijana was once again asked to contribute to an article by Neale Prior in The West Australian on Monday, March 6th, 2016.

In ‘Matters of death and life’ Marijana discusses the importance of completing a full analysis of your current super funds before consolidating them. Many of us have insurance attached to our super that we may not even know about. Marijana explains how important it is to look at what you already have before you make any changes.

As Marijana mentions, it’s always important to consider the implications before making alterations to your super. If you’re looking to sort out your super, contact us first for your free initial consultation here: http://www.lifefinancialplanners.com/contact-us/

The full article from the ‘Your Money’ lift-out is available here:

Matters of death and life – The West 6 March 2016 (Pg 1)

Matters of death and life – The West 6 March 2016 (Pg 2)

Matters of death and life, wealth management, business services, cash flow management, financial plans, insurance policy, debt management, estate planning, financial solutions, personal insurance, independent financial adviser

Matters of death and life in Australia, wealth management in Australia, business services in Australia, cash flow management in Australia, financial plans, insurance policy in Australia, debt management in Australia, estate planning in Australia, financial solutions in Australia, personal insurance in Australia, independent financial adviser in Australia

Matters of death and life at perth, wealth management at perth, business services at perth, cash flow management at perth, financial plans at perth, insurance policy at perth, debt management at perth, estate planning at perth, financial solutions at perth, personal insurance at perth, independent financial adviser at perth

IFA Excellence Awards 2015

IFA Excellence Awards 2015

The IFA Excellence Awards are the only industry awards dedicated exclusively to boutique and non-aligned financial advisers.

LIFE Financial Planners is proud to announce that we have been nominated as finalists for the second year in a row in the category of Best Client Servicing – Company. As an independently-owned financial advice company that pride ourselves on providing the best personal advice and customer service we are extremely honoured to be finalists in this category again.

FINALIST_BEST_CLIENT_SERVICING_COMPANY (3) IFA Excellence Awards 2015 IFA Excellence Awards 2015 FINALIST BEST CLIENT SERVICING COMPANY 3

The IFA Excellence Awards will be announced at a ceremony in Sydney on Friday, August 7th.

Single life can lead to little death

Single life can lead to little death

Setting yourself up with life insurance is easier when you’re young and healthy and the premiums are often much less than you’d think. Neale Prior spoke to Marijana for his article ‘Single life can lead to little death’ in The West Australian (April 20, 2015). Marijana explains that men and women in their mid-twenties should get plenty of income protection, trauma and TPD insurance in case something goes wrong in their active life.

If you’d like to talk to Marijana about putting insurances in place to protect yourself, your family and your assets, please give us a call.

Read Neale Prior’s article in ‘Your Money’ in The West Australian; ‘Single life can lead to little death’, featuring our very own Marijana Ravlich.

Single life can lead to little death – The West 20 April 2015

 

Life Financial Planners in The West Australian

Picking up the tab if things go wrong

Marijana was featured once again in The West Australian on Monday, February 9th 2015!

In Neale Prior’s article ‘Picking up the tab if things go wrong’, featured in The West’s ‘Your Money’ liftout, Marijana discusses her reasoning for ensuring her daughters are adequately covered with life insurance.

If, like Marijana, you have children that may be in need of life insurance cover, please do not hesitate to call us to discuss how we can help.

The full article is available here:

Picking up the tab if things go wrong – The West 09 Feb 2015

Sort Out Your Super in 2015

Taking a little time to look at your superannuation now can make a huge difference in the future. As this article from The New Daily explains, few of us are aware of how much super we have, what it’s invested in and how much we’ll need for retirement.

Many of us aren’t interested in how our super performs until we’re close to retirement but much like you check your bank statement each month, just checking your super is on track regularly can make such a difference later. Don’t leave it until it’s too late – make 2015 your year to get your super on track!

http://thenewdaily.com.au/money/2015/01/13/sort-out-your-superannuation/