Centrelink Options to help you

Centrelink’s Financial Information Service helps people to understand their financial options. This is especially so where a person needs to deal with the death of a family member whether it be unexpected or anticipated.

Why plan?
When a person is gravely injured or terminally ill, they or their loved ones need to prepare. This is often very difficult as the physical and emotional toll on the family means that important and necessary decisions may be made in a less than ideal atmosphere. Planning can lessen this burden, as it allows the precious time left with loved ones to be used for focusing on each other rather than being consumed by legal or practical processes.

Why do I need succession planning?
For many of us there is no need to consider succession planning at all. However, for those with assets in a family business, private trust or private company - including a farm - the need to plan for succession is very real.
Succession planning should be something that occurs before you are too old or too ill to continue working your property or business. Ideally, it is something that you do as part of your ongoing business plan, rather than just handing it over to your solicitor, accountant or financial planner. It is a process that you and your family members will go through to achieve all of your financial, legal and emotional needs, revisited over time. The first stage is understanding the viability of your family business. The second stage is exploring each family member’s needs, whether they are involved in the family business or not. Can the business provide for all or only some of these needs and will these needs change over time? The third stage is building it into the business plan.

Succession planning could include deciding:
• Whether you completely retire or reduce the hours you work
• If or when you retire
• The cost of providing for your retirement
• If you want to live on or off the farm when you retire (if you are a farmer)

Most families who own a family business don’t avoid the issues of succession planning. Often, they just haven’t got around to talking or doing something about it. Sadly, a few find that these decisions need to be made in haste at a time of family crisis, such as a serious illness or death. Others, who have talked about succession planning as a family and what it means for them, have found that all of the family members have benefited from these discussions. Besides making decisions about being fair to all of the family members in the various generations, whether they are currently involved in the business or not, you will also need to include decisions that will affect all of you in the short term as well as the medium to long term. It’s not about giving everything to your children - it’s about balance.

Why do I need estate planning?
Estate planning is often about the assets we wish to pass on to our loved ones, but for some it is also about the debt we do not wish to pass on. Estate planning deals with the use an Enduring Power of Attorney, updated insurance policies and an updated Will to ensure that you and your family are adequately provided for. Some people also take the opportunity to explore the function of Testamentary Trusts, which are set up to distribute income to your spouse, children and/or other beneficiaries while maintaining assets within the Trust. Death is never easy for those left behind and if arrangements are not made for your intended beneficiaries, the law decides who gets what proportion of your estate.

Where can I get free, unbiased information?
With both succession and estate planning you need to be aware of the legal consequences of your decisions, including taxation and social security. To assist with this process, Centrelink’s Financial Information Service (FIS) holds free seminars on these topics as part of its National Seminar Campaign. The campaign has proven extremely successful in providing individuals with unbiased information about many lifestyle and financial issues. In some locations the information is presented as a series of related seminars. You can choose to go to an individual seminar or to the whole series. Experts from federal and state government bodies and various industry groups often attend the seminars as guest speakers. In addition, FIS Officers will assist people to appreciate the role of experts and to be more confident about contacting professionals who can assist them with their planning needs. Phone 13 63 57 to obtain more information about an FIS seminar near you.