Did you know that one in three marriages ends in divorce?1 No surprise then that the number of blended families in Australia is rising.2
Clients who remarry are often keen to ensure their new spouse is well looked after in the event of their death. There is also often a desire to leave assets to children from a previous marriage. This can be particularly important if clients remarry later in life, do not have any subsequent children and have accumulated significant assets in their superannuation fund.
If you have a client in this situation, what happens to their assets when they die?
The small APRA fund (SAF) solution for blended families offers a way to protect their assets, provide for a surviving spouse and ensure that any remaining capital passes to their children. The Australian Prudential Regulation Authority (APRA) regulates the fund, known as a small APRA fund (SAF).
Incorporating our a SAF into your estate planning strategy for a client will give them peace of mind knowing that their super will be distributed according to their wishes. To find out more, read our case study and technical flyer.
For more information on estate planning solutions for blended families, please call us on 1800 254 180.
1. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014
2. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014