Everyone gets confused. There’s a myriad of terms and jargon that mostly sound gobbledygook for most of us.
Estate Planning, Asset Protection, Negative geared, Positive geared. These are just a few terms that will make anyone’s head spin. So today, we’ve come up with some of the most used and heard of terms and their corresponding meaning, layman’s terms. Read on:
- Superannuation – refers to the arrangements which people make in Australia to have funds available for them in retirement. In Australia, superannuation arrangements are government-supported and encouraged, and minimum provisions are compulsory for employees.
- Self-managed super funds (SMSFs) -allow people to control their own super investments for their retirement.
- Asset protection – consists of methods available to protect assets from liabilities arising elsewhere.
- Estate Planning – a term used to protect wealth and distribute it according to the owner’s wishes upon their death.
- Wills – Determine how you want your assets distributed upon your death. If you don’t do it, the Government (State) legislation will determine it.
- Probate – the first step in the legal process of administering the estate of a deceased person, resolving all claims, and distributing the dead person’s property under a will.
- Trusts– an obligation imposed on a person or other entity to hold the property for the benefit of beneficiaries. As such, it is a relationship, not a legal entity.
That’s the 1st part of our glossary of terms. Stay tuned for the 2nd part of this glossary series.
At Wealth Safe, we’re here to help you with all your asset protection, tax planning, business structuring, and superannuation needs. We work with you to find the best strategy to keep your assets safe, slash your tax 100% legally, and put more money in your pocket.
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