Reference no: EM133186218

Question - Part (a) Scott is an IT specialist and has a $1.2m life insurance policy in place owned by his wife Amelia. Scott also has $750 000 held in his superannuation account with a non-binding death benefit nomination in place leaving 50% of the funds to his two adult children and 50% to his brother Charles who has a gambling issue. The couple's home is jointly owned by Scott and Amelia, as is the couple's share portfolio. Scott also owns a holiday home owned as tenants in common with Charles. They inherited the holiday home from their parents. Scott has a will in place that provides for the establishment of a testamentary trust upon his death and Scott is seeking to maximise the amount of his estate that is able to be held in the testamentary trust. Discuss the following issues:

(a) How is each of Scott's assets likely to be distributed upon his death?

(b) What modifications would be required to help Scott achieve his objective of maximising the amount of his estate held in the testamentary trust?

(c) What potential problems could be faced by the brother upon the distribution from Scott's superannuation fund and can you suggest any solution?

Part (b) Amelia is an only child and is worried about the state of her elderly parents' health. She is particularly worried that her dad might be in the early stages of dementia, although no formal diagnosis of this has been made. What estate planning strategies would be appropriate for Amelia's parents?